Wall Street's new money printer goes brrr… for stablecoin treasuries 💸

State Street Investment Management has launched the State Street Stablecoin Reserves Money Market Fund, a Rule 2a-7 government money market fund designed for stablecoin issuers operating under the GENIUS Act framework. The fund invests in US government securities and repurchase agreements commonly used to back stablecoins, and carries the ticker SSCXX with a $15 million minimum investment. State Street Bank and Trust Company and Anchorage Digital, a federally chartered crypto bank, are the fund's initial investors. State Street Investment Management, the asset management arm of State Street Corporation, oversees more than $5 trillion in assets, with other State Street figures citing total assets under custody at approximately $5.5 trillion.

The product is structured to comply with reserve requirements under the GENIUS Act, signed into law on July 18, 2025, which created the first federal regulatory framework for payment stablecoins in the United States. Yie-Hsin Hung, CEO of State Street, said the legislation has clarified how stablecoin reserves can be invested. "With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested," Hung said, adding that the firm's cash management history has been built around "principal preservation, liquidity and income." Nathan McCauley, CEO and co-founder of Anchorage Digital, said stablecoins are "core financial infrastructure" and that the quality of reserves is increasingly important to the industry.

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 onchain cash management using stablecoins. It also comes as other major financial firms move into the same space: JPMorgan filed in May to launch JLTXX, a tokenized money market fund intended to hold assets backing stablecoins; Morgan Stanley launched its Stablecoin Reserves Portfolio; and Coinbase disclosed an investment in the ProShares GENIUS Money Market ETF in June.

Fidelity Investments is the latest entrant, set to launch the Fidelity Reserves Digital Fund on Thursday, a money market fund investing in US Treasury bills, notes and bonds with maturities of 93 days or less, cash, and overnight repurchase agreements backed by Treasuries. The fund will also invest in other government money market funds that comply with the law. Fidelity's debut comes days after State Street's, underscoring competition among traditional asset managers for the reserve pool tied to a stablecoin market that has grown to roughly $315 billion to $320 billion 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, and Tether's March 2026 reserves report showed 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.