State Street Launches Money Market Fund for Stablecoin Reserves

State Street Investment Management, a division of one of the world's largest custodian banks, has announced the launch of a new money market fund (MMF) specifically designed for stablecoin issuers. This move comes in the wake of the US GENIUS Act, which sets reserve requirements for stablecoins.

What is the GENIUS Act?

The GENIUS Act is a bill regulating stablecoin issuance in the US. It requires issuers to hold reserves in highly liquid assets such as short-term government bonds or cash. The State Street fund meets these requirements, providing issuers with a tool to manage reserves.

How Does This Relate to USDT and Stablecoins?

Stablecoins like USDT (Tether) and USDC (Circle) are backed by reserves that must be transparent and liquid. The new State Street fund allows issuers to place reserves in a regulated instrument, increasing trust in stablecoins. For users, this means greater stability and reliability of stablecoins, especially when transferring between networks.

Practical Value for VirtCardPay Users

While this news does not directly address fees and speed, it highlights the growing institutional support for stablecoins. This means USDT and USDC will remain liquid and stable, which is important when paying for foreign services via VirtCardPay. The choice of network (TRC-20 vs ERC-20) remains key: TRC-20 is cheaper and faster for transfers, but ERC-20 may be preferable for integration with DeFi protocols.

Conclusion

The launch of the State Street fund is another step toward legitimizing stablecoins. For users, this means USDT and USDC will be more reliable, and regulation will reduce risks. VirtCardPay will continue to support both networks so you can choose the optimal payment method.

Disclaimer: This material is for informational purposes only and does not constitute financial advice. The cryptocurrency market is volatile; consult a professional before making decisions.

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Sources

This material is for informational purposes only and is not financial advice. Data and service terms may change, so check primary sources before making a payment or investment decision. Mentions of third-party brands and services do not imply official partnership, support, or endorsement by VirtCardPay.
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