State Street Investment Management launched a Rule 2a-7 government money market fund designed for stablecoin issuers to hold reserve assets under the GENIUS Act framework.

Initial investors in the fund include State Street Bank and Trust Company and Anchorage Digital, a crypto-focused bank with a U.S. federal charter.

The fund invests in cash, short-term U.S. Treasuries, repos, and other cash equivalents to preserve liquidity.

Industry-wide reserve-management products are expanding as stablecoins emerge as a growing revenue stream for asset managers and custodians amid rising institutional adoption.

Competition and leadership in the space are highlighted, with giants like BlackRock and Goldman Sachs/BNY among peers as SSCXX is presented within a broader shift toward institutional-grade digital asset infrastructure.

Major managers including BlackRock, Franklin Templeton, Fidelity, and JPMorgan vie to oversee Treasury bills, cash, and money market instruments behind stablecoins as issuance grows.

Tether and Circle hold tens of billions in Treasury assets, while global stablecoin issuance is projected to reach up to $4 trillion by 2030, underscoring growing reserve-management assets.

Anchorage Digital's Nathan McCauley emphasizes stablecoin reserve quality and management within a regulated framework as stablecoins become core financial infrastructure.

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Anchorage is active in GENIUS-compliant issuances and stablecoin projects, with partnerships including Western Union, Falcon Finance, and OSL Group.

The move is part of a broader industry push as firms compete to offer GENIUS-aligned stablecoin reserve asset management products following GENIUS Act passage.

State Street officials stress principal preservation, liquidity, and income, highlighting collaboration with Anchorage Digital to support digital asset reserves.