State Street has introduced a government money market fund specifically designed for stablecoin issuers under the GENIUS Act framework, entering the race to manage reserves backing the growing stablecoin market. The fund, named State Street Stablecoin Reserves Money Market Fund, aims to oversee Treasury bills, cash, and money market funds that support stablecoins. This move intensifies competition among major asset managers including BlackRock, Franklin Templeton, Fidelity, and JPMorgan. Initial investors include State Street Bank and Trust Company and Anchorage Digital. With Tether and Circle collectively holding tens of billions in Treasury assets, and projections of global stablecoin issuance reaching up to $4 trillion by 2030, reserve management is seen as a lucrative new revenue stream for Wall Street firms. The fund follows State Street's earlier launch of SWEEP, a tokenized liquidity fund with Galaxy Digital, signaling the firm's broader focus on tokenized money and on-chain cash management.

Key facts

• State Street launches a government money market fund for stablecoin issuers.
• Fund competes with BlackRock, Franklin Templeton, Fidelity, and JPMorgan.
• Initial investors include State Street Bank and Anchorage Digital.
• Tether and Circle hold tens of billions in Treasury assets.
• Stablecoin issuance projected to reach $1.9-4 trillion by 2030.

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