State Street Drops $5.5T Into Stablecoin Reserve Game, Because GENIUS Loves Company 💸

State Street Investment Management has launched a Rule 2a-7 government money market fund designed to hold reserve assets for stablecoin issuers under the framework established by the GENIUS Act, which was signed into law on July 18, 2025. The fund, structured to invest in US government securities and repurchase agreements, counts State Street Bank and Anchorage Digital, a federally chartered crypto bank, among its initial investors. State Street Investment Management, the asset management arm of State Street Corporation, oversees more than $5 trillion in assets.

According to details published on State Street's website, the product officially launched on June 8 under the ticker SSCXX and carries a minimum investment threshold of $15 million, positioning it for institutional stablecoin issuers, payment firms, and treasury managers rather than retail investors. Yie-Hsin Hung, CEO of State Street, said the GENIUS Act has clarified how stablecoin reserves can be invested, adding that the firm's cash management history has centered on "principal preservation, liquidity and income." Anchorage Digital CEO and co-founder Nathan McCauley said stablecoins are "core financial infrastructure" and that reserve quality is increasingly important as the GENIUS Act establishes a clearer regulatory framework.

The launch follows State Street's earlier introduction of the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity product developed with Galaxy Digital that enables onchain cash management using stablecoins. It also comes as other major financial firms move into the same space. In May, JPMorgan filed to launch JLTXX, a tokenized money market fund intended to hold assets backing stablecoins while complying with the GENIUS Act, investing in US Treasury bills and overnight repurchase agreements. Weeks earlier, Morgan Stanley launched its Stablecoin Reserves 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 investing in assets eligible to back payment stablecoins under the law.

The broader stablecoin market has reached approximately $315 billion, up from about $260 billion when the GENIUS Act was signed, according to DefiLlama data. State Street cited projections from Citi estimating global stablecoin issuance could reach between $1.9 trillion and $4 trillion by 2030. According to Tether's March 2026 reserves report, the company held approximately $191.8 billion in assets backing USDT ($USDT), with US Treasury bills accounting for the majority of its cash-equivalent reserves, underscoring the scale of the reserve-asset market now drawing entries from traditional asset managers.