State Street Launches Regulated U.S. Fund for Stablecoin Reserves
State Street’s investment management arm is launching a new money market fund designed for stablecoin issuers and structured to comply with U.S. regulatory requirements.
State Street Investment Management announced the launch of the State Street Stablecoin Reserves Money Market Fund, a government money market fund created specifically for stablecoin issuer reserves. Among the fund’s first investors were State Street Bank and Trust Company and Anchorage Digital.
The fund is intended to serve as a reserve management vehicle for digital asset issuers, with a focus on capital preservation, liquidity, and yield. The launch reflects State Street’s broader strategy to expand into tokenized asset markets and blockchain infrastructure solutions.
The company said the fund was designed with new U.S. regulations in mind. The GENIUS Act, passed by the U.S. Congress in July 2025, established a clearer framework for holding stablecoin reserves in money market funds registered under the Investment Company Act.
State Street also noted that it recently introduced the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized solution that enables 24/7 liquidity management through stablecoins. The new fund complements that offering and strengthens the company’s position in the institutional digital asset solutions segment.
Notably, State Street Bank launched a financial product tokenization platform in early 2026, aiming to connect the traditional financial system with digital asset markets.
As of March 31, 2026, State Street Investment Management oversaw more than $5 trillion in assets under management, while its client base spanned 60 countries.
Earlier in 2026, the investment management divisions of JPMorgan and Morgan Stanley also launched money market funds designed to hold reserve assets for stablecoin issuers.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners
Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.
If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.
The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends
Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%
For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.
Crypto prices
More
