State Street launches GENIUS-compliant stablecoin reserve fund

State Street launched the State Street Stablecoin Reserves Money Market Fund (SSCXX) on Tuesday. The fund is designed for stablecoin issuers and large custodians to hold reserves while aiming to preserve principal, provide daily liquidity and maintain a $1 net asset value per share, with a modest yield target.

SSCXX is structured as a Rule 2a-7 government money market fund. It will invest only in cash and high-quality, short-term U.S. government-backed instruments, including Treasury bills, repurchase agreements and other cash equivalents. The Rule 2a-7 structure limits the types of assets the fund can hold to narrow credit and liquidity risk.

State Street Bank and Trust Company and Anchorage Digital made initial investments in the fund at launch. The firm has not disclosed target assets under management or fee levels.

The fund was developed to comply with the GENIUS Act, passed in July 2025, which established a U.S. regulatory framework for stablecoin issuance and allowed certain funds to hold stablecoin reserves. State Street CEO Yie-Hsin Hung described the fund’s objectives as “Principal preservation, liquidity and income.” Hung also noted the firm’s four decades of cash management experience and said the GENIUS Act creates clarity on how stablecoin reserves can be invested.

State Street has offered other crypto-focused cash products. The earlier State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP) is a tokenized on-chain cash vehicle that lets stablecoin holders sweep assets into a cash product. The firm launched a Digital Asset Platform (DAP) in January for token lifecycle management and maintains a partnership with Taurus for digital custody, tokenization and node services.

Anchorage Digital, an initial investor in SSCXX, issues GENIUS-compliant tokens including Tether’s USAT and has developed branded stablecoins for several institutional partners.

Several large financial firms have introduced tokenization or stablecoin-linked cash products in recent years, reflecting increased industry activity around digital assets and custody services.

State Street said the fund’s operating model targets daily liquidity so participants can access funds on short notice while preserving a stable $1 share price. The firm did not provide further operational details at launch.