State Street launches GENIUS Act stablecoin reserve fund

State Street launched the SSCXX Stablecoin Reserves Money Market Fund on June 8, 2026. The fund opened with roughly $121 million in assets, targets a stable $1.00 net asset value and reported a starting yield of about 3.51%. It operates under SEC Rule 2a-7.

The fund holds only assets allowed by the GENIUS Act: short-term U.S. Treasuries maturing in 93 days or less, overnight repurchase agreements collateralized by those Treasuries, and cash. State Street reported a three-day weighted average maturity for the portfolio, well under the 60-day limit that applies to similar reserve vehicles.

The Capital Class shares trade under the ticker SSCXX, carry a 0.18% net expense ratio and require a $15 million minimum purchase for that class. The limited investment universe is designed to meet the GENIUS Act eligibility requirements for stablecoin reserves.

The GENIUS Act, enacted in July 2025, established a federal framework for payment stablecoins. It requires issuers to back outstanding stablecoins one-to-one with high-quality liquid assets and allows registered 1940 Act money market funds to serve as reserve accounts. State Street designed the SSCXX fund for stablecoin issuers and other institutional clients seeking SEC-regulated reserve holdings.

State Street Bank and Trust Company and Anchorage Digital joined as seed investors. Anchorage holds the first federally chartered crypto bank in the U.S. and provides institutional services for stablecoin issuance, custody and settlement. Nathan McCauley, co-founder and CEO of Anchorage Digital, described stablecoins as ‘quickly becoming core financial infrastructure, making the quality and management of their reserves critically important.’ Yie-Hsin Hung, president and CEO of State Street Investment Management, highlighted the firm’s decades of cash management experience, adding ‘We’re excited to partner with Anchorage Digital to bring these capabilities to the digital assets space.’

The SSCXX launch follows similar reserve funds introduced by other large institutions after the GENIUS Act took effect. BlackRock created a reserves fund in partnership with Circle, and Goldman Sachs and BNY launched GENIUS-aligned money market products earlier in 2026. State Street also markets the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized cash management product that operates via stablecoin rails.

Market data in mid-June 2026 put total stablecoin supply near $300 billion to $315 billion, with Tether at about $186 billion to $188 billion and USDC near $75 billion. State Street cited a Citi Institute projection that global stablecoin issuance could reach between $1.9 trillion and $4 trillion by 2030.

The fund carries risks tied to stablecoin minting and redemption cycles. Large or rapid redemptions could force asset sales at unfavorable prices and create liquidity pressure. A stablecoin depeg or sudden outflows could cause sharp withdrawals. The fund is not FDIC insured and has no guarantee from State Street against loss of principal. The restricted investment universe limited to GENIUS-eligible short Treasuries and repos may result in yields that are lower than broader government or prime money market funds.

State Street priced SSCXX for institutional stablecoin issuers and other qualified investors seeking reserve solutions that comply with the GENIUS Act. The firm positioned the fund as an option for clients requiring high-quality, short-duration reserve instruments aligned with the new federal rules.