BNY Mellon (BNY) has launched the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a new money market fund designed to support U.S. stablecoin issuers in managing their reserves in compliance with the Guiding and Establishing National Innovation for U.S. Stablecoins ("GENIUS") Act. The fund caters to institutional stablecoin issuers and other qualified institutional investors.
The GENIUS Act, enacted in July 2025, establishes a federal regulatory framework for stablecoins in the U.S., specifying the types of assets that stablecoin issuers can hold as reserves. The Act mandates that stablecoin issuers maintain one-to-one reserves in highly liquid and "ultra-safe" assets, such as short-term U.S. Treasuries, reverse repos, and cash equivalents. BNY's new fund aims to meet these standards, offering issuers a way to earn modest returns on their reserves. The fund invests solely in short-term assets with maturities of 93 days or less. The BNY Dreyfus Stablecoin Reserves Fund can be used by U.S. stablecoin issuers to hold their stablecoin reserves once the GENIUS Act is effective.
Stephanie Pierce, Deputy Head of BNY Investments, stated that stablecoins are a core part of the digital asset ecosystem, facilitating a 24-hour payment environment. She added that the fund aims to help issuers manage reserves in a stable manner while adhering to regulatory requirements.
Anchorage Digital, the first federally chartered crypto bank in the U.S., has made an initial investment in the fund. Nathan McCauley, CEO of Anchorage Digital, believes that the GENIUS Act and BNY's liquidity infrastructure will establish new standards for the regulated stablecoin era. BNY emphasized that the fund will be one of the reserve options available to stablecoin issuers once the GENIUS Act takes effect.
BNY has a history of involvement in the digital asset space, providing custody and other services for various stablecoin and digital asset initiatives. The bank already custodies reserves for stablecoins issued by Circle and Ripple. In April 2025, BlackRock became the first customer for BNY's Digital Asset Data Insights product, a part of its Digital Asset Platform. In July, BNY collaborated with Goldman Sachs to launch a tokenized money market fund solution, and last month, it reached an agreement with WisdomTree to be the provider of its core banking-as-a-service (BaaS) infrastructure for digital assets.
BNY Investments Dreyfus, a top 10 U.S. money market fund sponsor, is the affiliated liquidity solutions provider of BNY and the flagship offering on BNY's industry-leading Liquidity Direct platform. BNY Mellon Investment Adviser, Inc. is the fund's investment advisor and has engaged its affiliate, Dreyfus, a division of Mellon Investments Corporation, to serve as the fund's sub-advisor.
The stablecoin market has experienced significant growth, with a surge of 68.5% to $305 billion. According to Citi, the stablecoin market could potentially reach $4 trillion in the coming years. Some analysis suggests that the stablecoin market could reach $1.5 trillion by 2030.
