State Street, the Boston-based custody bank, has rolled out a money market fund designed specifically for the reserves backing dollar-pegged stablecoins. The fund, ticker SSCXX, comes in partnership with Anchorage Digital, a federally chartered digital asset bank. It's structured to comply with the GENIUS Act, a U.S. bill that sets reserve requirements for stablecoin issuers.
What SSCXX offers
The fund is a money market reserve vehicle aimed at regulated stablecoin infrastructure. It holds short-term, high-quality assets — the kind that meet the liquidity and credit standards the GENIUS Act demands. For stablecoin issuers, that means a ready-made way to park reserves without having to build the compliance framework from scratch.
State Street isn't new to custody, but this is its first fund explicitly tied to a stablecoin regulatory framework. Anchorage Digital provides the digital asset custody and blockchain connectivity, so the fund can settle on-chain if needed. The two companies say the fund is open to institutional clients who need to hold reserves in a format that regulators can track.
Why the GENIUS Act matters
The GENIUS Act — short for “Guiding Established and New Initiatives for Stablecoin Use” — isn't law yet, but it's the most advanced stablecoin bill in Congress. It would require issuers to back every token with reserves composed of cash, Treasuries, or money market funds. That's where SSCXX fits: it's a compliant wrapper for those reserves.
Money market funds have long been a go-to for cash management. By aligning with the GENIUS Act, State Street is betting that stablecoin issuers will need auditable, regulated reserve vehicles before the bill passes — or at least be ready when it does.
The race for stablecoin reserves
State Street isn't the only firm chasing this market. Banks, trust companies, and asset managers are all jostling to hold the billions of dollars that sit behind stablecoins like USDC and USDT. The competition is heating up as the regulatory picture clears. A fund like SSCXX offers issuers a turnkey solution, but it also gives State Street a foothold in a market that could expand fast if the GENIUS Act passes.
Anchorage Digital's role is key. As a federally chartered digital asset bank, it can hold crypto assets and fiat in the same regulated entity, which simplifies the custody chain for issuers who want to keep reserves in a traditional money market fund while still minting tokens on-chain.
The next test will be whether issuers actually move reserves into SSCXX. State Street hasn't disclosed any clients yet. With the GENIUS Act still in committee, the immediate demand is uncertain. But the fund is live, and the infrastructure is in place — now it's a question of who signs up first.
