Money Market News
The U.S. Treasury's Office of Financial Research published its "2025 Annual Report to Congress" yesterday, which includes a section on Money Markets and Money Market Funds. The press release, "OFR Releases 2025 Annual Report to Congress," states, "Today the Office of Financial Research (OFR) published its 2025 Annual Report to Congress. As required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, this report provides an analysis of any threats to the financial stability of the United States, the status of the efforts of the OFR in meeting its mission, and key findings from the research and analysis of the financial system. The report covers the fiscal year ending September 30, 2025." (Note: Register soon for our upcoming Money Fund University, which is Dec. 18-19 in Pittsburgh.)
State Street Investment Management is the fourth money fund manager to launch a Stablecoin Reserves money market fund, following BlackRock's Circle Treasury Reserves, and Stablecoin Reserves offerings from Goldman Sachs and BNY. A Form N-1A Registration Statement for the pending State Street Stablecoin Reserves Money Market Fund tells us, "The investment objective of State Street Stablecoin Reserves Money Market Fund ... is to seek a high level of current income consistent with preserving principal and liquidity and the maintenance of a stable $1.00 per share net asset value. The Fund, which is advised by SSGA Funds Management, Inc., invests in assets in which payment stablecoin issuers are permitted to invest in under a U.S. law enacted in July 2025 designed to establish a framework of these issuers and any regulation adopted thereunder (the 'GENIUS Act')."
Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds increased over the past 30 days to a new record high $1.597 trillion, rising from $1.558 trillion the month prior. Yields inched lower, while assets for USD and GBP MMFs rose and EUR MMFs fell over the past month. Like U.S. money fund assets, European MMFs have repeatedly hit record highs in 2023, 2024 and 2025 (after a pause in Q2'25). These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $29.0 billion over the 30 days through 11/14. The totals are up $164.4 billion (11.5%) year-to-date for 2025, they were up $235.3 billion (19.7%) for 2024 and up $166.9 billion (16.2%) for the year 2023. (Note that currency moves in the U.S. Dollar cause Euro and Sterling totals to shift when they're translated back into totals in USD. See our latest MFI International for more on the "offshore" money fund marketplace. These funds are only available to qualified, non-U.S. investors and are almost entirely institutional.)
The November issue of our Bond Fund Intelligence, which was sent to subscribers Monday a.m., features the stories, "Muni Bond Funds Battered But Making a Comeback," which details the challenges and recent rebound of tax exempt bond funds; and "PIMCO's Sonali Pier Talks Multisector BFs w/Barron's," which excerpts from an interview on strategy and credit markets. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund returns were higher again in October while yields moved lower. We excerpt from the new issue below. (Contact us if you’d like to see our latest Bond Fund Intelligence and BFI XLS spreadsheet, or our Bond Fund Portfolio Holdings data.)
A press release titled, "BNY Launches Stablecoin Reserves Fund, Further Expanding BNY's Leadership in Digital Assets," tells us, "BNY ... announced the launch of the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a money market fund created to support institutional adoption of digital assets in the liquidity space. The fund is intended to enable U.S. stablecoin issuers and other qualified institutional investors acting for themselves or in a fiduciary, advisory, agency, brokerage, custodial, or similar capacity. The fund is designed to hold the reserves for stablecoins to be issued under the Guiding and Establishing National Innovation for U.S. Stablecoins ('GENIUS') Act. The fund does not invest in stablecoins." (See Crane Data's August 20 News, "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle.")
Crane Data's November Money Fund Portfolio Holdings, with data as of Oct. 31, 2025, show that holdings of Treasuries jumped while Repo exposure inched lower. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) increased by $158.4 billion to $7.753 trillion in October, after increasing $56.1 billion in September, $166.6 billion in August, $17.6 billion in July, $84.0 billion in June and $72.0 billion in May. They decreased by $73.8 billion in April. Assets rose by $45.6 billion in March, $53.7 billion in February, $84.1 billion in January and $88.0 billion in December. Treasuries, the largest portfolio composition segment, increased by $180.5 billion. Repo, the second largest segment, decreased $6.0 billion in October. Agencies were the third largest segment, and CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our Money Fund Portfolio Holdings statistics. (Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)
Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be sent out Wednesday (money markets are closed Tuesday for the Veteran's Day Holiday), and we'll be writing our regular monthly update on the new October data for Thursday's News. But we also already uploaded a separate and broader Portfolio Holdings data set based on the SEC's Form N-MFP filings on Monday. (We continue to merge the two series, and the N-MFP version is now available via our Portfolio Holdings file listings to Money Fund Wisdom subscribers.) Our new N-MFP summary, with data as of October 31, includes holdings information from 987 money funds (up 16 from last month), representing assets of $7.917 trillion (up from $7.766 trillion a month ago). Prime MMFs rose to $1.211 trillion (up from $1.206 trillion), or 15.3% of the total. We review the new N-MFP data and we also look at our revised MMF expense data, which shows charged expenses were mostly flat and money fund revenues rose to $20.8 billion (annualized) in October. (Note: For those new to the money market fund space or in need of a refresher, please join us for our "basic training" event, Money Fund University, which is Dec. 18-19 in Pittsburgh.)
Crane Data's latest monthly Money Fund Market Share rankings show assets sharply higher among the largest U.S. money fund complexes in October after also jumping in September. Assets have increased in 15 of the past 16 months (only April 2025 saw declines). Money market fund assets rose by $141.7 billion, or 1.8%, last month to a record $7.854 trillion. Total MMF assets have increased by $381.3 billion, or 5.1%, over the past 3 months, and they've increased by $986.0 billion, or 14.4%, over the past 12 months. The largest increases among the 25 largest managers last month were seen by Goldman Sachs, BNY Dreyfus, BlackRock, JPMorgan and Invesco, which grew assets by $54.8 billion, $14.8B, $14.5B, $12.7B and $10.9B, respectively. Declines in October were seen by SSIM, UBS, Federated Hermes, American Funds and Northern, which decreased by $7.7 billion, $1.9B, $1.6B, $1.0B and $1.0B, respectively. Our domestic U.S. "Family" rankings are available in our MFI XLS product, our global rankings are available in our MFI International product. The combined "Family & Global Rankings" are available to Money Fund Wisdom subscribers. We review the latest market share totals, and look at money fund yields, which were lower in October.
The November issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Friday morning, features the articles: "State Street Joins Money Market ETF Party; Barron's," which discusses a filing for the latest Prime Money Market ETF; "BNY on Money Market Evolution; Schwab, NTRS Q3'25 Earnings," which reviews the latest money fund and digital asset commentary on earnings calls; and "BlackRock Breaks $1 Trillion; Stablecoin Reserve," which highlights BlackRock's AUM milestone and new 'BSTBL' Fund. We also sent out our MFI XLS spreadsheet Friday a.m., and we've updated our Money Fund Wisdom database with 10/31/25 data. Our November Money Fund Portfolio Holdings are scheduled to ship on Wednesday, Nov. 12 (a day late due to the Veterans Day Holiday), and our November Bond Fund Intelligence is scheduled to go out on Monday, Nov. 17.
Following the latest Fed cut last week, Investment News asks, "What to do with cash now that Fed has officially cut rates?" They explain, "The verdict came in as expected Wednesday. The Federal Reserve lowered the federal funds rate by 25 basis points to a target range of 3.75% to 4.00%.... Fed Chair Jerome Powell responded [to a question]: 'If you're driving in the fog, you slow down.' This comment added some intrigue to the FOMC's next and final decision scheduled for 2025, which will be made on December 9-10.... As the Fed continues to cut short-term interest rates, the high yields on cash and money market funds should grind lower. And for those investors allocating to a cash bucket to fund near-term liabilities, Brian Storey, head of multi-asset strategies at Brinker Capital Investments, suggests grabbing additional yield if possible while still focusing on the safety of the principal."
TD Securities published, "The Impact of Stablecoins and Digital Assets in the U.S." Written by Jan Nevruzi and Gennadiy Goldberg, the piece tells us, "Digital assets are quickly moving from the periphery of financial markets into the mainstream. Cryptocurrencies remain volatile and largely speculative, but other digital assets have found rapid institutionalization and are reshaping the liquidity, settlement and collateral landscape. These assets are increasingly designed to replicate money-like claims with added features that come with the blockchain rails (the underlying network that communicates the information about the transactions). The growth in these asset classes has made them an important participant in fixed income markets, most notably in the U.S. Treasury market."
State Street Investment Management filed to launch State Street Prime Money Market ETF, the 7th Money Market ETF offering and just the second "Prime" Money Market ETF. The Form N1-A Registration Statement states, "The investment objective of the State Street Prime Money Market ETF (the 'Fund') is to seek to maximize current income, to the extent consistent with the preservation of capital and liquidity.... The Fund follows a disciplined investment process in which SSGA Funds Management, Inc. ('SSGA FM' or the 'Adviser'), the investment adviser to the Fund, bases its decisions on the relative attractiveness of different money market instruments. In the Adviser's opinion, the attractiveness of an instrument may vary depending on the general level of interest rates, as well as imbalances of supply and demand in the market. Among other things, the Adviser conducts its own credit analyses of potential investments and portfolio holdings and relies substantially on a dedicated short-term credit research team." (The expense ratio for the fund has not been disclosed yet.)
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