State Street targets stablecoin reserve boom with new money market fund
CoinDesk 2026-06-16 14:27:26
Context: State Street has launched a government money market fund designed specifically for stablecoin issuers, aiming to manage the reserves that back digital dollars under the GENIUS Act framework. This move is part of a growing trend among major asset managers, including BlackRock, Franklin Templeton, Fidelity, and JPMorgan, to oversee the Treasury bills, cash, and money market funds that support stablecoins. The stablecoin market is expected to grow significantly, with projections estimating global stablecoin issuance could reach up to $4 trillion by 2030.
Key Facts
- State Street Investment Management has introduced the State Street Stablecoin Reserves Money Market Fund, a government money market fund designed specifically for stablecoin issuers operating under the framework established by the GENIUS Act.
- The fund's introduction intensifies competition among major asset managers, including BlackRock, Franklin Templeton, Fidelity, and JPMorgan, to manage the assets backing stablecoins, a market that could swell into the trillions of dollars.
- Tether and Circle, the two largest stablecoin issuers, collectively hold tens of billions of dollars in Treasury-related assets, 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.
- The fund's initial investors include State Street Bank and Trust Company and Anchorage Digital, the crypto-focused bank that holds a federal charter in the United States.
- BlackRock already oversees much of the Treasury portfolio backing Circle's $75 billion USDC stablecoin, while Franklin Templeton, Fidelity, and JPMorgan have each expanded tokenized cash and digital asset offerings over the past year.