State Street Investment Management has launched a money market fund designed for stablecoin issuers, offering a vehicle to hold reserve assets under the framework established by the GENIUS Act.
The fund is structured as a Rule 2a-7 government money market fund and will invest in assets commonly used to back stablecoins, including U.S. government securities and repurchase agreements. The fund’s initial investors include State Street Bank and Anchorage Digital, a federally chartered crypto bank.
State Street said the product was designed to meet the reserve requirements set forth in the GENIUS Act, which was signed into law on July 18, 2025, creating the first federal regulatory framework for payment stablecoins in the United States.
The launch follows the introduction of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity product developed with Galaxy Digital that enables on-chain cash management using stablecoins.
State Street Investment Management, the asset management arm of State Street Corporation, oversees more than $5 trillion in assets and is one of the largest investment managers in the world.
Related: Bitwise Completes Acquisition of Superstate’s $259 Million Crypto Carry Fund
Asset Managers Compete for Stablecoin Reserve Assets
The launch of State Street comes as financial firms rush to develop asset management products that support stablecoins following the passage of the GENIUS Act.
In May, JPMorgan filed to launch JLTXX, a tokenized money market fund intended to hold assets backing stablecoins while meeting the requirements set out in the GENIUS Act. The fund would invest in U.S. Treasury bills and overnight repurchase agreements, assets commonly used to back stablecoins pegged to the dollar.
The filing came weeks after Morgan Stanley launched its stablecoin reserve portfolio, a money market fund that allows stablecoin issuers to hold reserve assets while earning interest.
In June, Coinbase disclosed an investment in the ProShares GENIUS Money Market ETF, a Treasury-focused fund that invests in assets eligible to support compliant payment stablecoins. The exchange said the investment was aligned with its expanding cash management and stablecoin businesses.
The stablecoin market has grown to approximately $315 billion from approximately $260 billion when the GENIUS Act was enacted, according to data from DefiLlama. State Street cited projections from Citi estimating that global stablecoin issuance could reach between $1.9 trillion and $4 trillion by 2030.
Fountain: DefiLlama
The stablecoin reserve asset market has expanded along with the adoption of stablecoins. According to Tether’s March 2026 reserves report, the company had approximately $191.8 billion in assets backing USDT (USDT), with US Treasury bills accounting for the majority of its cash equivalent reserves.
Magazine: Bitcoin the ‘canary in the coal mine’, XRP transaction demand drops 91.5%: market movements
