State Street launches GENIUS Act-aligned money market fund for stablecoin reserves

Written by Nate Kostarstaff writerReviewed by Robert Lakinstaff editorWritten by Nate Kostarstaff writerReviewed by Robert Lakinstaff editorState Street launches GENIUS Act-aligned money market fund for stablecoin reservesLatest NewsPublishedJun 16, 2026The launch comes amid growing competition among financial institutions to manage assets backing dollar-pegged stablecoins.State Street Investment Management has launched a money market fund designed for stablecoin issuers, offering a vehicle for holding reserve assets under the framework established by the GENIUS Act. The fund is structured as a Rule 2a-7 government money market fund and will invest in assets commonly used to back stablecoins, including US government securities and repurchase agreements. The fund's initial investors include State Street Bank and Anchorage Digital, a federally chartered crypto bank.State Street said the product was designed to comply with reserve requirements established under the GENIUS Act, which was signed into law on July 18, 2025, creating the first federal regulatory framework for payment stablecoins in the United States.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.State Street Investment Management, the asset management arm of State Street Corporation, oversees more than $5 trillion in assets and is one of the world's largest investment managers.Related: Bitwise completes takeover of Superstate's $259M crypto carry fundAsset managers compete for stablecoin reserve assetsState Street's launch comes as financial firms rush to develop products aimed at managing assets that back stablecoins following the passage of the GENIUS Act.In May, JPMorgan filed to launch JLTXX, a tokenized money market fund intended to hold assets backing stablecoins while complying with requirements established under the GENIUS Act. Th…

State Street launches GENIUS Act-aligned money market fund for stablecoin reserves

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