State Avenue Funding Administration has launched a cash market fund designed for stablecoin issuers, providing a car for holding reserve belongings beneath the framework established by the GENIUS Act.
The fund is structured as a Rule 2a-7 authorities cash market fund and can put money into belongings generally used to again stablecoins, together with US authorities securities and repurchase agreements. The fund’s preliminary buyers embody State Avenue Financial institution and Anchorage Digital, a federally chartered crypto financial institution.
State Avenue stated the product was designed to adjust to reserve necessities established beneath the GENIUS Act, which was signed into regulation on July 18, 2025, creating the primary federal regulatory framework for fee stablecoins in the US.
The launch follows the introduction of the State Avenue Galaxy Onchain Liquidity Sweep Fund (SWEEP), a tokenized liquidity product developed with Galaxy Digital that allows onchain money administration utilizing stablecoins.
State Avenue Funding Administration, the asset administration arm of State Avenue Company, oversees greater than $5 trillion in belongings and is among the world’s largest funding managers.
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Asset managers compete for stablecoin reserve belongings
State Avenue’s launch comes as monetary corporations rush to develop merchandise aimed toward managing belongings that again stablecoins following the passage of the GENIUS Act.
In Might, JPMorgan filed to launch JLTXX, a tokenized cash market fund supposed to carry belongings backing stablecoins whereas complying with necessities established beneath the GENIUS Act. The fund would put money into US Treasury payments and in a single day repurchase agreements, belongings generally used to again dollar-pegged stablecoins.
The submitting got here weeks after Morgan Stanley launched its Stablecoin Reserves Portfolio, a cash market fund that enables stablecoin issuers to carry reserve belongings whereas incomes curiosity.
In June, Coinbase disclosed an funding within the ProShares GENIUS Cash Market ETF, a Treasury-focused fund that invests in belongings eligible to again fee stablecoins beneath the regulation. The alternate stated the funding aligned with its increasing stablecoin and money administration companies.
The stablecoin market has grown to roughly $315 billion from about $260 billion when the GENIUS Act was signed into regulation, based on DefiLlama knowledge. State Avenue cited projections from Citi estimating world stablecoin issuance might attain between $1.9 trillion and $4 trillion by 2030.
Supply: DefiLlama
The marketplace for stablecoin reserve belongings has expanded alongside stablecoin adoption. Based on Tether’s March 2026 reserves report, the corporate held roughly $191.8 billion in belongings backing USDT (USDT), with US Treasury payments accounting for almost all of its cash-equivalent reserves.
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