BNY's Stablecoin Fund Bridges Traditional Finance and 24/7 Digital Markets

BNY Launches Stablecoin Reserves Fund to Bolster Institutional Liquidity Infrastructure

The Bank of New York Mellon Corp. (NYSE: BK) has introduced the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a government money market fund designed to support institutional adoption of digital assets by providing a regulated vehicle for stablecoin issuers to hold reserves under the GENIUS Act. The fund, which does not invest in stablecoins themselves, aims to address the growing demand for secure, short-duration assets to back U.S. dollar-backed tokens as the market expands according to Bloomberg.

Enacted in July 2025, the GENIUS Act mandates that stablecoin issuers maintain reserves in ultra-safe, short-term investments, such as securities with maturities of 93 days or less. BNY's new fund aligns with these requirements, offering a solution for issuers to comply with federal regulations while generating returns on their reserves. Stephanie Pierce, Deputy Head of BNY Investments, emphasized the fund's role in advancing the digital asset ecosystem: "Cash is the cornerstone of the digital asset ecosystem, enabling global capital markets to move toward an always-on, 24/7 environment" according to BNY.

The fund has already secured an initial investment from Anchorage Digital, the first federally chartered crypto bank in the U.S. Nathan McCauley, Co-Founder and CEO of Anchorage Digital, called the initiative a "new chapter for stablecoin infrastructure in the U.S.," highlighting the importance of regulatory rigor and transparency in bridging traditional finance and digital assets according to BNY. Anchorage's involvement also underscores the growing institutional interest in stablecoin ecosystems, particularly as the firm collaborates with major players like Tether to develop GENIUS Act-compliant tokens.

Market projections suggest the stablecoin industry could balloon to $1.5 trillion by 2030, driven by regulatory clarity and increasing client adoption. Current stablecoin reserves, valued at $305 billion as of November 2025, have grown 68.5% year-to-date, with analysts predicting potential totals of up to $4 trillion in bullish scenarios. However, the sector faces scrutiny over liquidity risks, as highlighted by the Bank Policy Institute, which warned that stablecoins could pose systemic threats during market stress events according to Bloomberg.

BNY, a leader in digital asset services, manages over 80% of U.S. digital asset exchange-traded products and custodies more than 50% of global tokenized fund assets according to BNY. The launch of BSRXX further cements its position in the evolving digital finance landscape, leveraging its Liquidity Direct platform to offer tailored solutions for stablecoin issuers. With over $57.8 trillion in assets under custody and administration, BNY is well-positioned to capitalize on the sector's growth while navigating regulatory and operational challenges.