CoinDesk
State Street Investment Management on Tuesday launched the State Street Stablecoin Reserves Money Market Fund, a government money market fund built specifically for stablecoin issuers operating under the GENIUS Act framework. The fund's initial investors are State Street Bank and Trust Company and Anchorage Digital, the federally chartered crypto bank, anchoring the launch with both a traditional balance sheet and a regulated on-ramp for digital-asset issuers.
The product puts State Street into direct competition with BlackRock, Franklin Templeton, Fidelity and JPMorgan for the reserves — Treasury bills, cash and money market fund paper — that back dollar-pegged tokens. BlackRock already manages a large share of the Treasury portfolio behind Circle's $75B USDC, and the rest of the field has spent the last year rolling out tokenized cash and reserve-management offerings. State Street separately built SWEEP, a tokenized liquidity fund developed with Galaxy Digital, framing the new money market fund as the reserve-management counterpart to that onchain cash product.
Why it matters
The GENIUS Act framework turns stablecoin reserves into a defined regulatory asset class with hard composition rules, and every issuer now needs a manager who can sit inside that wrapper. That is the structural shift: reserves are no longer ad hoc Treasury custody — they are a regulated money market product slot, and the firms that win those mandates collect a durable AUM-based fee stream on assets that grow with stablecoin issuance. State Street's entry, alongside BlackRock, Franklin Templeton, Fidelity and JPMorgan, means the top tier of US asset management is now treating stablecoin reserves as a core product line, not an experiment.
Market impact
Tether and Circle together already hold tens of billions of dollars in Treasury-related assets, and State Street cited projections of $1.9T to $4T in global stablecoin issuance by 2030 as institutional adoption accelerates. The fee pool scales linearly with that issuance, and the manager-share race is now a four-or-five-horse field rather than BlackRock alone.
Frequently asked questions
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What did State Street actually launch?
A government money market fund called the State Street Stablecoin Reserves Money Market Fund, designed for stablecoin issuers operating under the GENIUS Act framework. State Street Bank and Anchorage Digital are the initial investors.
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Why are asset managers competing for stablecoin reserves?
Stablecoin issuers back their tokens with Treasury bills, cash and money market funds, and the GENIUS Act turns those reserves into a regulated asset class. Managers collect a durable AUM-based fee stream that scales with stablecoin issuance.
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How big could the stablecoin reserve market get?
State Street cited projections of $1.9T to $4T in global stablecoin issuance by 2030. Tether and Circle already hold tens of billions in Treasury-related assets, and Circle's USDC alone is around $75B.
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Who is State Street competing with for these mandates?
BlackRock, which already manages much of the Treasury portfolio behind Circle's USDC, plus Franklin Templeton, Fidelity and JPMorgan — all of which have rolled out tokenized cash or reserve-management products over the past year.
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What other crypto-adjacent products has State Street built?
State Street previously launched SWEEP, a tokenized liquidity fund developed with Galaxy Digital, which it frames as the onchain cash counterpart to the new stablecoin reserve money market fund.
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