State Street Launches Stablecoin Reserve Fund Amid GENIUS Act Growth

State Street Investment Management has launched a money market fund designed for stablecoin issuers. The GENIUS Act-aligned fund will hold reserve assets, including US government securities and repurchase agreements, under the framework established by the law. This launch follows State Street's introduction of the Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity product that enables on-chain cash management using stablecoins.

The GENIUS Act, signed into law on July 18, 2025, created the first federal regulatory framework for payment stablecoins in the United States. The fund's initial investors include State Street Bank and Anchorage Digital, a federally chartered crypto bank. State Street Investment Management oversees more than $5 trillion in assets and is one of the world's largest investment managers.

The market for stablecoin reserve assets has expanded alongside stablecoin adoption. According to DefiLlama data, the stablecoin market grew from approximately $260 billion when the GENIUS Act was signed into law to around $315 billion today. Citi estimates that global stablecoin issuance could reach between $1.9 trillion and $4 trillion by 2030.