State Street launches GENIUS-compliant money market fund for stablecoin issuers

State Street has launched a specialized government money market fund called the State Street Stablecoin Reserves Money Market Fund (SSCXX) that is designed for stablecoin issuers to park their reserves.

The move follows similar initiatives from the likes of BlackRock, Morgan Stanley, and JPMorgan, among other big bank tokenization efforts.

The fund, supported by initial investment from State Street Bank and Trust Company and Anchorage Digital, aims for principal preservation, daily liquidity, and a stable $1 share price, while earning a bit of yield, or "principal preservation, liquidity and income," as described by State Street CEO Yie-Hsin Hung in an announcement on Tuesday.

It was also explicitly designed to comply with the GENIUS Act, passed in July 2025, which created a clear U.S. regulatory framework for stablecoins and allows these kinds of funds to hold reserves.

"For more than 40 years, the cash management business of State Street Investment Management has delivered liquidity solutions to the world’s largest and most sophisticated institutional investors," Hung said. "With the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested."

SSCXX is a Rule 2a-7 government money market fund, a conservative type of fund that invests only in cash, short-term U.S. Treasuries, repo agreements, and other cash equivalents, according to the announcement.

Of note, this is not State Street’s first money market fund targeted at the stablecoin sector. The move builds on the earlier State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized onchain cash product that stablecoin holders can “sweep” their assets into.

The firm also launched its Digital Asset Platform (DAP) in January to support token lifecycle management, and has maintained a longstanding partnership with Taurus for digital custody, tokenization, and node management.

Anchorage has also been deepening its stablecoin work, including as the issuer of Tether’s GENIUS-compliant token USAT, as well as branded stablecoins for Western Union, Falcon Finance, and OSL Group.