State Street targets stablecoin reserve boom with new money market fund
The asset manager joins BlackRock, Franklin Templeton and others competing to manage reserves backing the growing stablecoin market.
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Summary
- State Street has introduced a government money market fund tailored for stablecoin issuers, aiming to manage the reserves that back digital dollars under the GENIUS Act framework.
- The move intensifies competition among major asset managers such as BlackRock, Franklin Templeton, Fidelity and JPMorgan to oversee the Treasury bills, cash and money market funds that support stablecoins.
- With Tether and Circle already holding tens of billions of dollars in Treasury-related assets and global stablecoin issuance projected to reach up to $4 trillion by 2030, Wall Street firms see stablecoin reserve management as a fast-growing source of fee-generating assets.
