New fund aligns with GENIUS Act to provide regulated backing for stablecoins amid $191.8 billion reserve market growth.
State Street has launched a money market fund designed to hold reserve assets for stablecoins, aligning with the GENIUS Act framework. The move targets a growing market, as stablecoin issuers seek regulated, high-quality liquid assets to back digital currencies like USDT.
Tether’s March 2026 reserves report showed $191.8 billion in assets backing USDT, primarily US Treasury bills. The fund aims to offer institutional-grade solutions for stablecoin reserves, addressing demand for transparency and compliance in the sector.
The launch reflects broader efforts to integrate stablecoins into traditional financial systems while mitigating risks associated with unregulated reserve assets.