Key Takeaways
- • State Street Investment Management launched the State Street Stablecoin Reserves Money Market Fund, a GENIUS Act-aligned Rule 2a-7 government money market fund built for stablecoin issuers.
- • State Street Bank and Trust Company and Anchorage Digital are initial investors in the fund, which is positioned as one of the first GENIUS Act-aligned government money market funds to support stablecoin issuance at scale.
- • The launch follows the SWEEP tokenized liquidity fund and reflects State Street's push into 24/7 onchain cash management.
- • Citi Institute projects global stablecoin issuance of $1.9 trillion to $4 trillion by 2030, which the company cites as the growth driver for reserve-backed money market demand.
- • The fund carries standard money market risks, including the absence of FDIC insurance and no sponsor obligation to support the $1.00 per share value.
Summary
State Street Investment Management announced the launch of the State Street Stablecoin Reserves Money Market Fund, a registered Rule 2a-7 government money market fund designed specifically for the reserve needs of stablecoin issuers. The company said the fund was designed and built to comply with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which Congress passed in July 2025 to create a regulatory framework allowing money market funds registered under the Investment Company Act of 1940 to back stablecoin issuance.
State Street Bank and Trust Company and Anchorage Digital, which describes itself as home to the first federally chartered crypto bank in the United States, are initial investors in the fund. Yie-Hsin Hung, president and chief executive officer of State Street Investment Management, said the cash management business has served large institutional investors for more than 40 years and that the approach focuses on principal preservation, liquidity and income. Nathan McCauley, co-founder and chief executive officer of Anchorage Digital, said stablecoins are becoming core financial infrastructure and that the fund combines State Street's cash management expertise with Anchorage Digital's regulated stablecoin infrastructure.
The company cited Citi Institute research, Stablecoins 2030: Web3 to Wall Street (September 2025), projecting global stablecoin issuance of between $1.9 trillion and $4 trillion by 2030. State Street expects this growth to increase the volume of stablecoin reserves backed by government money market fund assets.
The launch follows the recent introduction of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity solution that enables 24/7 onchain cash management via stablecoins, subject to stablecoin availability in the fund's portfolio. The company said the new fund advances its broader strategy of institutional-grade participation in tokenized markets.
The offering materials include standard risk disclosures. The fund seeks to preserve its value at $1.00 per share but cannot guarantee it will do so, is not FDIC insured, and its sponsor is not required to reimburse losses. The fund may also involuntarily redeem investors who do not meet retail money market eligibility requirements. State Street Investment Management reported more than $5 trillion in assets under management as of March 31, 2026.
State Street Bank and Trust Company and Anchorage Digital, which describes itself as home to the first federally chartered crypto bank in the United States, are initial investors in the fund. Yie-Hsin Hung, president and chief executive officer of State Street Investment Management, said the cash management business has served large institutional investors for more than 40 years and that the approach focuses on principal preservation, liquidity and income. Nathan McCauley, co-founder and chief executive officer of Anchorage Digital, said stablecoins are becoming core financial infrastructure and that the fund combines State Street's cash management expertise with Anchorage Digital's regulated stablecoin infrastructure.
The company cited Citi Institute research, Stablecoins 2030: Web3 to Wall Street (September 2025), projecting global stablecoin issuance of between $1.9 trillion and $4 trillion by 2030. State Street expects this growth to increase the volume of stablecoin reserves backed by government money market fund assets.
The launch follows the recent introduction of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity solution that enables 24/7 onchain cash management via stablecoins, subject to stablecoin availability in the fund's portfolio. The company said the new fund advances its broader strategy of institutional-grade participation in tokenized markets.
The offering materials include standard risk disclosures. The fund seeks to preserve its value at $1.00 per share but cannot guarantee it will do so, is not FDIC insured, and its sponsor is not required to reimburse losses. The fund may also involuntarily redeem investors who do not meet retail money market eligibility requirements. State Street Investment Management reported more than $5 trillion in assets under management as of March 31, 2026.
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