Circle · Wall Street · JPMorgan · U.S. Treasury · CoinDesk
State Street targets stablecoin reserve boom with new money market fund
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
◎ Multiple-sources
Wall Street's largest asset managers are increasingly competing to manage the assets backing stablecoins, a market that could swell into the trillions of dollars as digital dollars become a larger part of the financial system.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- BlackRock already oversees much of the Treasury portfolio backing Circle's $75 billion USDC stablecoin, while Franklin Templeton, Fidelity and JPMorgan have each expanded tokenized cash and digital
- The fund follows State Street's introduction of SWEEP, a tokenized liquidity fund developed with Galaxy Digital
- The fund's initial investors include State Street Bank and Trust Company and Anchorage Digital, the crypto-focused bank that holds a federal charter in the United States
Summary
State Street has introduced a government money market fund tailored for stablecoin issuers, aiming to manage the reserves that back digital dollars under the GENIUS Act framework. The move intensifies competition among major asset managers such as BlackRock, Franklin Templeton, Fidelity and JPMorgan to oversee the Treasury bills, cash and money market funds that support stablecoins. With Tether and Circle already holding tens of billions of dollars in Treasury-related assets and global stablecoin issuance projected to reach up to $4 trillion by 2030, Wall Street firms see stablecoin reserve management as a fast-growing source of fee-generating assets.