State Street, one of the world's largest custodians, has rolled out a federally compliant money market fund for stablecoin issuers, with digital asset bank Anchorage Digital joining as seed investor.
State Street Rolls Out GENIUS Act-Aligned Fund for Stablecoin Issuers
17 June 2026 - 05:29 CEST
Rule 2a-7 reserve fund
The new fund, State Street Stablecoin Reserves Money Market Fund (SSCXX), is structured under the US Securities and Exchange Commission's Rule 2a-7, which governs money market funds and limits them to short-term, high-quality assets. It conforms to the US federal stablecoin GENIUS Act, a 16 Jun statement from State Street said.
State Street, which had over $5tn in assets under management as of 31 Mar, joins similar reserve-fund offerings from BlackRock and Goldman Sachs.
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, passed in July 2025, created a framework under which money market funds registered under the Investment Company Act of 1940 can back the issuance of stablecoins. Under the law, payment stablecoin issuers must back their tokens 1:1 with high-quality liquid assets.
"With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested," said Yie-Hsin Hung, president and CEO of State Street Investment Management.
The fund invests in cash, short-term US government securities and repurchase agreements, with maturities capped at 93 days per the GENIUS Act. It targets a stable net asset value of $1.00 per share.
The structure offers stablecoin issuers two things bank deposits do not: yield from short-term Treasuries, and a path to move reserves onchain without exiting the regulated framework.
Anchorage as digital rail
Anchorage Digital, a federally chartered digital asset bank in the US, is providing the regulated stablecoin infrastructure linking the fund to blockchain networks. In an X post, the firm described itself as a "seed investor" in the new fund without disclosing details.
"Stablecoins are quickly becoming core financial infrastructure, making the quality and management of their reserves critically important," said Nathan McCauley, co-founder and CEO of Anchorage Digital.
Citi projects stablecoin issuance to reach $1.9tn to $4tn by 2030, driven by institutional adoption.
Beyond fund administration
In April, State Street announced onchain fund servicing for European clients by the end of 2026, subject to regulatory approvals, starting with Luxembourg.
The firm also recently introduced the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity product offering 24/7 onchain cash management via stablecoins.
