State Street Investment Management has launched a new money market fund designed for stablecoin issuers and large cash managers, aiming to provide a regulated and compliant place to hold reserves. Anchorage Digital is a seed investor in the fund, which is built to align with the GENIUS Act framework.
The launch addresses the growing need for regulated and compliant infrastructure for stablecoin reserves, particularly following the passage of the GENIUS Act, potentially increasing institutional confidence and adoption of stablecoins.
State Street Investment Management has launched a new money market fund specifically designed for stablecoin issuers and large cash managers, aiming to provide a regulated and compliant avenue for holding reserves. Anchorage Digital is participating as a seed investor and will serve as the digital custodian for the fund's stablecoin investments.
The State Street Federal Stablecoin Reserves Money Market Fund is built to align with the framework established by the GENIUS Act, a new U.S. law that sets standards for stablecoin reserve management. This initiative seeks to bridge traditional financial structures with on-chain capabilities, allowing stablecoin holders to earn yield on their reserves while maintaining access to liquidity.
The fund holds traditional securities, such as short-term government and high-quality instruments. It utilizes technology from Chainlink, including NAVLink for daily on-chain net asset value publication and CCIP for controlled cross-chain connectivity. State Street Bank and Trust acts as the securities custodian, while NAV Consulting serves as the transfer agent.
Anchorage Digital, a federally chartered crypto bank, views this fund as an extension of its existing role in managing stablecoin reserves. By connecting institutional clients to this structure, Anchorage aims to simplify compliance with new regulations. The move reflects a broader trend of traditional finance institutions offering familiar structures that integrate with blockchain technology, driven by growing demand and regulatory clarity in the stablecoin market.