The newly launched money market fund by State Street Investment Management is tailored for stablecoin reserves, reflecting a strategic move in response to intensified competition among financial institutions. Designed to align with the regulatory standards of the GENIUS Act, the fund primarily invests in US government securities and repurchase agreements.
Initial backers of the fund include State Street Bank and Anchorage Digital, a federally chartered crypto bank. The GENIUS Act, enacted on July 18, 2025, established the first federal guidelines for payment stablecoins in the U.S. This initiative follows State Street's previous introduction of the Galaxy Onchain Liquidity Sweep Fund, a product aimed at facilitating onchain cash management.
State Street oversees over $5 trillion in assets, making it one of the largest investment managers globally. The launch of this fund coincides with other major financial players, such as JPMorgan and Morgan Stanley, also entering the market with products compliant with the GENIUS Act to manage stablecoin reserves.