State Street launched the State Street Stablecoin Reserves Money Market Fund (SSCXX), a specialized government money market fund designed for stablecoin issuers to park their reserves, the company announced Tuesday. The fund follows similar initiatives from BlackRock, Morgan Stanley, and JPMorgan and was explicitly designed to comply with the GENIUS Act, which passed in July 2025 and created a clear U.S. regulatory framework for stablecoins. The fund received initial investment from State Street Bank and Trust Company and Anchorage Digital and aims for principal preservation, daily liquidity, and a stable $1 share price while earning yield, as State Street CEO Yie-Hsin Hung stated in the announcement.
SSCXX Fund Targets Principal Preservation and Liquidity
The fund aims for principal preservation, daily liquidity, and a stable $1 share price while earning yield, described by State Street as "principal preservation, liquidity and income." State Street CEO Yie-Hsin Hung stated in the announcement that the fund delivers liquidity solutions to institutional investors and that "with the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested."
SSCXX Operates as Rule 2a-7 Government Money Market Fund
SSCXX is a Rule 2a-7 government money market fund, a conservative fund type that invests only in cash, short-term U.S. Treasuries, repo agreements, and other cash equivalents, according to the announcement. The fund structure complies with the GENIUS Act regulatory framework for stablecoin reserve investment.
State Street Builds on Prior Digital Asset Initiatives
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 launched its Digital Asset Platform (DAP) in January to support token lifecycle management and has maintained a partnership with Taurus for digital custody, tokenization, and node management.
Anchorage Digital Expands Stablecoin Issuer Role
Anchorage Digital provided initial investment in SSCXX and has deepened its stablecoin work as the issuer of Tether's GENIUS-compliant token USAT, as well as branded stablecoins for Western Union, Falcon Finance, and OSL Group.
FAQ
What did State Street launch on Tuesday?
State Street launched the State Street Stablecoin Reserves Money Market Fund (SSCXX), a specialized government money market fund designed for stablecoin issuers to park their reserves. The fund was announced Tuesday and received initial investment from State Street Bank and Trust Company and Anchorage Digital.
Why did State Street design SSCXX to comply with the GENIUS Act?
State Street designed SSCXX to comply with the GENIUS Act, which passed in July 2025 and created a clear U.S. regulatory framework for stablecoins and allows these kinds of funds to hold reserves. State Street CEO Yie-Hsin Hung stated that "with the GENIUS Act, a clear framework has been established for how stablecoin reserves can be invested."
How does SSCXX differ from State Street's earlier stablecoin fund?
SSCXX is a Rule 2a-7 government money market fund that invests only in cash, short-term U.S. Treasuries, repo agreements, and other cash equivalents. It 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.
