Asset manager State Street has launched a money market fund (MMF) to manage reserves for stablecoin issuers.

Cointelegraph, a blockchain outlet, reported on June 16 that the product is designed to allow custody of reserve assets in line with the U.S. stablecoin regulatory bill known as the GENIUS Act.

The fund adopts a government money market fund structure under Rule 2a-7, U.S. money market fund regulations. It invests in assets typically used for dollar-pegged stablecoin reserves, including U.S. Treasuries and repurchase agreements. State Street Bank and federally chartered crypto bank Anchorage Digital participated as initial investors.

State Street said the product was designed to meet reserve requirements under the GENIUS Act, which was enacted on July 18, 2025. The bill established the first federal regulatory framework in the United States for payment stablecoins.

The launch is also linked to State Street's recent on-chain liquidity products. State Street earlier introduced the State Street Galaxy On-Chain Liquidity Sweep Fund, known as SWEEP, with Galaxy Digital and began providing on-chain cash management functions using stablecoins.

Market trends are also shifting quickly. Since the GENIUS Act passed, financial companies have accelerated development of products that manage stablecoin reserves. In May, JPMorgan applied to launch a tokenised money market fund called JLTXX. The fund is structured to meet relevant legal requirements by investing in short-term U.S. Treasury securities and overnight repurchase agreements (ROA).

Morgan Stanley launched a stablecoin reserve portfolio a few weeks earlier. The product is designed to allow stablecoin issuers to hold reserves while also earning interest income. In June, Coinbase disclosed it invested in the ProShares GENIUS Money Market ETF.

The stablecoin market is also growing. Based on DefiLlama data, the stablecoin market expanded from about $260 billion when the GENIUS Act was enacted to about $315 billion recently. State Street, citing Citi forecasts, said global stablecoin issuance could reach $1.9 trillion to $4 trillion in 2030.

The expansion of the reserve-asset market is also reflected in the asset sizes of major issuers. A reserve report disclosed by Tether in March 2026 showed USDT reserve assets of about $191.8 billion, with U.S. Treasuries the largest share among cash-like assets. As stablecoin issuance grows, the market for managing the Treasuries and repurchase agreements backing them also expands.

Competition among regulated financial firms is therefore widening beyond reserve custody to investment returns and on-chain linked services. As a large asset manager overseeing more than $5 trillion, State Street is expected to be closely watched for how stablecoin issuers choose their reserve management partners in the future.