BNY Launches Stablecoin Reserve Fund for Issuers

BNY has introduced the BNY Dreyfus Stablecoin Reserves Fund, aiming to offer infrastructure for stablecoin issuers to comply with U.S. Federal Reserve requirements. The fund, which holds cash-equivalent reserves, was initiated with an investment from Anchorage Digital, a federally chartered crypto bank. BNY forecasts a substantial growth of the stablecoin market, projecting it will expand from its current size of $300 billion to $1.5 trillion by the end of the decade. This initiative correlates with the recent enactment of the GENIUS Act, which establishes a regulatory framework for U.S. dollar-pegged digital currencies. BNY's move reflects the increasing importance of stablecoins as a payment method, as they are becoming integral to the global financial ecosystem. By providing a regulated vehicle to support stablecoin issuance, BNY is positioning itself to facilitate the effective integration of traditional finance with blockchain technologies.

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