TL;DR
- The Bank of New York Mellon launched the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a money market fund for stablecoin issuers seeking to comply with the GENIUS Act.
- The fund invests in high-quality securities with maturities of up to 93 days, allowing issuers to manage liquidity from new token issuances.
- Anchorage Digital made the initial investment and joins BNY, Circle, Ripple, and other institutional players integrating custody, compliance, and cash management in the stablecoin ecosystem.
The Bank of New York Mellon has launched the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a money market fund designed for stablecoin issuers that must comply with the requirements of the GENIUS Act, the U.S. law that regulates the custody and composition of reserves backing payment tokens.
BNY Mellon Moves Ahead of the GENIUS Act
The fund holds high-quality assets with maturities of up to 93 days, enabling issuers to invest proceeds from new token sales without breaching the liquidity and duration limits set by law. Although the rules have not yet taken effect, BNY advanced the launch to provide an early solution for issuers looking to align with the new framework.
Anchorage Digital made the fund’s initial investment. The firm, which in September announced a partnership with Tether to issue a token compliant with the GENIUS Act, becomes the first institutional participant in the vehicle. BNY already provides custody services for Circle and Ripple, and collaborates with BlackRock, WisdomTree, and Goldman Sachs on digital asset and stablecoin initiatives.
The GENIUS Act, signed by Donald Trump in July, establishes a federal standard requiring stablecoin issuers to hold reserves in liquid, safe, and easily redeemable assets. It also introduces custody and transparency obligations aimed at preventing mismatches during periods of market stress.
The Future of the Stablecoin Market
The stablecoin market has grown 68.5% over the past year, reaching $305 billion, according to DeFiLlama. Citi estimates total issuance could reach $1.9 trillion in a base-case scenario and $4 trillion in a bullish one. In this context, issuers need regulated vehicles suited to the new market environment.
BNY aims to fill that gap with a product combining regulatory compliance, institutional custody, and cash management. However, organizations such as the Bank Policy Institute warn that even under the new rules, stablecoins could still pose risks to investors and lenders, especially in cases of mass redemptions.
The launch of BSRXX marks a clear point of convergence between traditional banking and digital finance, signaling how stablecoin issuers will begin adapting their operational structures to the new U.S. regulatory landscape
