State Street enters the race to manage stablecoin reserves

State Street Investment Management launched the State Street Stablecoin Reserves Money Market Fund on 16 June 2026, a government fund built for stablecoin issuers under the GENIUS Act. State Street Bank and Anchorage Digital are the first investors.Key facts State Street launched a GENIUS Act-aligned government money market fund for stablecoin issuers on 16 June 2026.State Street Bank and Anchorage Digital are the fund's first investors.State Street cited projections of $1.9 trillion to $4 trillion in stablecoin issuance by 2030.State Street launches money market fund for stablecoin issuersState Street Investment Management launched the State Street Stablecoin Reserves Money Market Fund on 16 June 2026. The product is a registered Rule 2a-7 government money market fund built for stablecoin issuers. It was designed to comply with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. Congress passed the federal stablecoin law in July 2025. The fund invests in U.S. government securities and other low-risk assets that issuers use to back dollar-pegged tokens. State Street described it as among the first GENIUS Act-aligned government money market funds built to support stablecoin issuance at scale. State Street Bank and Anchorage Digital seed the fundThe fund's initial investors are State Street Bank and Trust Company and Anchorage Digital, home to the first federally chartered crypto bank in the United States. State Street partnered with Anchorage Digital to bring its cash management to digital asset firms that hold large reserves. State Street has managed cash for institutional investors for more than 40 years. The partnership pairs State Street's liquidity expertise with Anchorage Digital's regulated stablecoin infrastructure. "Stablecoins are quickly becoming core financial infrastructure, making the quality and management of their reserves critically important", 16 June 2026. — Nathan McCauley, Co-founder and Chief Executive Officer, Anchorage DigitalFund opened in June with a 0.18% expense ratioThe fund carries the ticker SSCXX and began operating on 8 June 2026, according to State Street's fund page. It requires a minimum initial investment of $15 million and charges a net expense ratio of 0.18%. According to Ledger Insights, the fund held about $121 million in assets shortly after launch. Wall Street firms compete for stablecoin reserve assetsState Street joins BlackRock, Franklin Templeton, Fidelity and JPMorgan in competing to manage the assets that back stablecoins. According to CoinDesk, BlackRock oversees much of the Treasury portfolio behind Circle's USD Coin (USDC). Tether and Circle, the two largest issuers, together hold tens of billions of dollars in Treasury-related assets. Stablecoin issuers accumulate billions of dollars in Treasury bills and money market funds, which makes reserve management an attractive, fee-generating business. Rival firms have moved quickly. According to Cointelegraph, JPMorgan filed in May 2026 to launch a tokenized money market fund for stablecoin reserves, and Morgan Stanley earlier introduced its own Stablecoin Reserves Portfolio. "With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested", 16 June 2026. — Yie-Hsin Hung, President and Chief Executive Officer, State Street Investment ManagementUSDC backs roughly $75 billion in reservesUSD Coin (USDC), the second-largest stablecoin, traded at $1.00 with a market value near $75 billion at the time of publication (CoinPaprika, 17 June 2026). USDC traded with around $14.7 billion in 24-hour volume (CoinPaprika, 17 June 2026). Reserves of that scale show why asset managers treat stablecoin backing as a fast-growing source of fee income. Stablecoin issuance could reach $4 trillion by 2030State Street cited projections that global stablecoin issuance could grow to between $1.9 trillion and $4 trillion by 2030 as institutional adoption rises. The U.S. stablecoin market has grown to roughly $315 billion, up from about $260 billion when the GENIUS Act became law, according to DefiLlama data cited by Cointelegraph. The launch builds on the firm's State Street Galaxy Onchain Liquidity Sweep Fund, a tokenized liquidity product developed with Galaxy Digital. State Street plans to expand its infrastructure for tokenized money and onchain cash management. The two products form part of the firm's push into tokenized markets and digital asset settlement. Primary source: Source ↗Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment.All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions.Coinpaprika is not liable for any losses resulting from the use of this information.