State Street Investment Management has announced the launch of the State Street Stablecoin Reserves Money Market Fund, that it says is designed to meet the needs of stablecoin issuers.
The new fund, which the firm says is “Genius Act-aligned” is the result of the clearer regulatory framework in the US, State Street Bank & Trust and Anchorage Digital are the initial investors.
The fund launches as the stablecoin market enters a new phase of growth, with State Street citing Citi research finding that global stablecoin issuance is projected to reach between $1.9 trillion and $4 trillion by 2030 as institutional adoption accelerates. This expansion is expected to drive an increase in stablecoin reserves backed by government money market fund assets, creating new opportunities for State Street’s institutional liquidity management solutions to back the digital ecosystem, the firm adds.
The launch builds on the recent introduction of the State Street Galaxy Onchain Liquidity Sweep Fund, a tokenised liquidity solution enabling 24/7 onchain cash management via stablecoins, subject to the availability of stablecoin in the fund’s portfolio.
“With the Genius Act, a clear framework has been established for how stablecoin reserves can be invested,” observes Yie-Hsin Hung, president and CEO of State Street Investment Management. “State Street Investment Management’s time-tested approach to cash management focuses on principal preservation, liquidity and income, and we’re excited to partner with Anchorage Digital to bring these capabilities to the digital assets space.”
Nathan McCauley, co-founder and CEO of Anchorage Digital, adds, “Stablecoins are quickly becoming core financial infrastructure, making the quality and management of their reserves critically important. As the Genius Act establishes a clear regulatory framework, this fund brings together State Street Investment Management’s decades of cash management expertise with Anchorage Digital’s regulated stablecoin infrastructure to help advance a more resilient, institutional-grade foundation for stablecoin reserves.”