State Street targets stablecoin reserve boom with new money market fund

FinanceState Street targets stablecoin reserve boom with new money market fundThe asset manager joins BlackRock, Franklin Templeton and others competing to manage reserves backing the growing stablecoin market.By Helene Braun|Edited by Jamie Crawley Jun 16, 2026, 2:27 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowState Street has introduced a government money market fund tailored for stablecoin issuers, aiming to manage the reserves that back digital dollars under the GENIUS Act framework.The move intensifies competition among major asset managers such as BlackRock, Franklin Templeton, Fidelity and JPMorgan to oversee the Treasury bills, cash and money market funds that support stablecoins.With Tether and Circle already holding tens of billions of dollars in Treasury-related assets and global stablecoin issuance projected to reach up to $4 trillion by 2030, Wall Street firms see stablecoin reserve management as a fast-growing source of fee-generating assets.Wall Street's largest asset managers are increasingly competing to manage the assets backing stablecoins, a market that could swell into the trillions of dollars as digital dollars become a larger part of the financial system.State Street Investment Management introduced the State Street Stablecoin Reserves Money Market Fund on Tuesday, a government money market fund designed specifically for stablecoin issuers operating under the framework established by the GENIUS Act.The fund's introduction comes as traditional financial (TradFi) firms race to position themselves as key providers of reserve management services for stablecoin issuers. Stablecoins, which are typically pegged to the U.S. dollar, are backed by reserves that often include Treasury bills, cash and money market funds. As issuance grows, so does the pool of assets generating management fees for fund providers.The fund's initial investors include State Street Bank …

State Street targets stablecoin reserve boom with new money market fund

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