State Street Launches Money Market Fund for Stablecoin Reserves
- State Street Investment Management has launched a money market fund for stablecoin issuers, compliant with the GENIUS Act.
- The fund is structured as a Rule 2a-7 government money market fund, investing in US government securities and repurchase agreements.
- Initial investors include State Street Bank and Anchorage Digital, a federally chartered crypto bank.
- The GENIUS Act, signed into law on July 18, establishes the first federal regulatory framework for payment stablecoins in the U.S.
- The stablecoin market has grown to approximately $315 billion since the enactment of the GENIUS Act.
State Street’s new fund aims to provide stablecoin issuers with a secure vehicle for holding reserve assets while adhering to regulatory requirements set by the GENIUS Act. This launch reflects a broader trend among financial firms developing products to manage assets backing stablecoins.
With global stablecoin issuance projected to reach between $1.9 trillion and $4 trillion by the end of the decade, State Street’s initiative positions it strategically within this expanding market.(Source)
