State Street Investment Management is the fourth money fund manager to launch a Stablecoin Reserves money market fund, following BlackRock's Circle Treasury Reserves, and Stablecoin Reserves offerings from Goldman Sachs and BNY. A Form N-1A Registration Statement for the pending State Street Stablecoin Reserves Money Market Fund tells us, "The investment objective of State Street Stablecoin Reserves Money Market Fund ... is to seek a high level of current income consistent with preserving principal and liquidity and the maintenance of a stable $1.00 per share net asset value. The Fund, which is advised by SSGA Funds Management, Inc., invests in assets in which payment stablecoin issuers are permitted to invest in under a U.S. law enacted in July 2025 designed to establish a framework of these issuers and any regulation adopted thereunder (the 'GENIUS Act')."
It continues, "These eligible investments include U.S. Treasury bills, notes and bonds ('U.S. Treasury Obligations') with a remaining maturity of 93 days or less or issued with a maturity of 93 days or less, as well as repurchase agreements secured by U.S. Treasury Obligations. The Fund may invest in any other assets that qualify as eligible investments under the GENIUS Act (and any regulations thereunder) and that are permitted under Rule 2a-7 for a government money market fund. The Fund does not invest in stablecoins. The Fund may hold a portion of its assets in cash pending investment, to satisfy redemption requests or to meet the Fund's other cash management needs."
State Street says, "The Fund invests in accordance with regulatory requirements applicable to money market funds, which require, among other things, the Fund to maintain a maximum dollar-weighted average maturity and dollar-weighted average life of sixty (60) days or less and 120 days or less, respectively, and to meet requirements as to portfolio diversification and liquidity."
They write, "The Fund is a 'government money market fund,' so it will invest at least 99.5% of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully. Government money market funds are exempt from requirements that permit and, under certain circumstances, require money market funds to impose a 'liquidity fee' on redemptions. As a 'government money market fund,' the Fund values its securities using the amortized cost method. The Fund will seek to maintain a stable value of $1.00 per share, however it cannot guarantee it will do so."
State Street's filing adds, "Fund Shares are expected to be held primarily by one or more stablecoin issuers as all or a portion of the reserve assets that back the stablecoins issued to their customers. Although the Fund does not invest in stablecoins or stablecoin issuers, the assets of the Fund are expected to fluctuate depending on the creation (minting) of additional stablecoins or the redemption (burning) of outstanding stablecoins. Stablecoins are relatively new and stablecoins or other digital assets that stablecoins may be used to purchase or sell may face periods of uncertainty and volatility that result in the potential for rapid or unexpected requests by one or more stablecoin issuers to redeem or purchase Fund Shares. Because the Fund intends to invest only in eligible investments, the Fund's yield may be lower than other money market funds that are permitted to invest in a wider universe of investments."
Mutual fund news firm ignites first wrote on the news in "State Street Joins 'Flurry of Filings' for Stablecoin Fund." They tell us, "State Street Investment Management plans to launch a stablecoin reserve money market fund, the firm disclosed Friday. The State Street Stablecoin Reserves Money Market Fund would invest in U.S. Treasury bills, notes and bonds and other assets that qualify under the Genius Act passed by Congress in July, the filing says.... The filing does not state what stablecoins the reserve fund would back.
The piece states, "The Genius Act created a more robust framework around stablecoin reserves, specifically limiting risks by forcing issuers to back each stablecoin with a reserve of assets and also limiting the types of reserve assets. It also streamlined custodial operations, forcing them to be safeguarded by regulated entities like banks. The law also prevents stablecoin issuers from offering any interest or yield to investors as a way to prevent them from competing directly with money market funds."
Ignites adds, "The firm also joins a growing queue of shops that have filed for similar products. In August, BNY filed for its own stablecoin money market fund. Goldman Sachs followed up with its own filing in October. WisdomTree and BlackRock, meanwhile, have disclosed plans to revamp existing products to meet requirements under the Genius Act. 'There's been a flurry of filings,' said Pete Crane, president of Crane Data. Rolling out a stablecoin reserve fund is 'the easiest way for money market funds to get a sheen of stablecoin without too much heavy lifting.'"
For more on Stablecoin Reserve funds, see these Crane Data News stories: "BNY Stablecoin Reserves Goes Live; ICI: Assets Eke Out Record $7.5T" (11/14/25), "TD Securities Writes on Stablecoins, Tokenized Money Funds, Digital" (11/5/25), "Northern Earnings Discuss Deposits, Tokenized Money Funds, Offshore" (10/24/25), "BNY's Vince on Q3 Call: Money Market Evolution, Dreyfus, Stablecoins" (10/22/25), "BlackRock Breaks $1 Trillion in Money Funds; Offers Stablecoin Reserve" (10/17/25), "Capital Advisors Group's Pan Comments on Laddered SMAs, Stablecoins" (10/6/25), "More Liberty Street Economics: Cautionary Historical Tale on Stablecoins" (10/2/25), "IMMFA on Tokenization of MMFs in Europe; Tether USDT; Fidelity Digital" (9/22/25), "Sept. MFI: Assets Break $7.6T; Stablecoin Reserves; JPM on Offshore MFs" (9/8/25), "Goldman Sachs: Summer of Stablecoin; FT: Banks Lobby to Block Interest" (8/26/25), "FOMC Minutes: RRP, Bills, Stablecoins" (8/21/25), "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle" (8/20), "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings" (8/13/25), "August MFI: BNY Portal Tokenizes; ICD's Tory Hazard; Stablecoins in Q2" (8/7/25) and "BNY's Liquidity Direct Portal Announces Plans to Tokenize Money Funds" (7/24/25).
In related news, Bloomberg posted an interview with BNY's Stephanie Pierce titled, "BNY Launches New Money Market Fund for Stablecoin Issuers." Pierce tells them, "The Genius Act was a landmark legislation that really removed a key barrier to the growth of stablecoins and issuance in the US, which was really creating that regulatory framework that everyone's been needing and wanting to understand how to structure these.... What we've launched with the BNY Dreyfus Stablecoin Reserves Fund ... is essentially a way for stablecoin issuers to access the same liquidity, resiliency, and stability of our money funds and also comply with the reserve requirements in the Genius Act.... Just to be specific, the difference between this money fund and the traditional money fund is that the maturity of the US Treasury securities must be 93 days or less, which is a little bit shorter than a traditional money fund."
Bloomberg mentions Tether and Circle, and asks, "But you think about the variety of stablecoin issuers out there, theoretically this money market fund is for any number of them?" Pierce replies, "We do believe there will be many more of them. In fact, BNY just published a ... primer or an outlook on the digital asset industry and what we think will happen. And in that, we talk a little bit about this space, not just tokenized money funds, but the sort of what we call programmable money complex -- so tokenized money funds, stablecoins, tokenized deposits. And our projection is that we could see that entire sort of set of programmable money and cash equivalents grow to as much as $3.6 trillion in five years, that's 2030."
She comments on stablecoin issuers, "So if you think about it right, they have the choice of either investing in these types of securities themselves or actually using a money fund. And so if you think of what the core business of a stablecoin issuer is, it's probably not to invest in the securities themselves. So they'd much rather use a proven and trusted [provider]."
Pierce adds, "Cash and liquidity are the lifeblood of a custody bank -- it's what runs through the arteries and veins of our ecosystem at BNY. [About] 20% of global capital market assets ... traffic through BNY's infrastructure every single day. So really what we're doing as BNY is trying to bridge the traditional infrastructure that the whole financial industry traffics on to the digital infrastructure. And cash is the cornerstone of the digital ecosystem that allows you to move from one to the other.... Cash, which is the lifeblood of our bank, is what gets us there."
Finally, she tells Bloomberg, "From a cyclical perspective, cash is pretty attractive right now, right? In a money market fund, you're getting almost a four percent yield, notwithstanding what the Fed may or may not do in December. And relative to both the volatility and predictability and sort of safety and soundness of other asset classes, it still looks pretty attractive.... What's really most exciting about it is cash is really at the vortex of all of this change. It's facilitating and enabling the rails of today to become the rails of tomorrow."
