BNY Launches Stablecoin Reserve Fund for Issuers

BNY, one of the oldest banks in the U.S., has introduced the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a money market fund to help stablecoin issuers comply with U.S. federal reserve requirements. The fund will hold cash-equivalent reserves for stablecoins issued under the GENIUS Act, a federal law establishing a legal framework for digital currencies pegged to the U.S. dollar. BNY anticipates that the stablecoin market, currently valued at $300 billion, will grow to $1.5 trillion by the end of the decade. This initiative follows the trend of stablecoins gaining traction as payment methods and is part of BNY's effort to bridge traditional finance with blockchain technology. Anchorage Digital, a federally chartered crypto bank, provided the fund’s initial investment. The fund is aimed at institutional investors and supports compliant stablecoin issuance at scale.

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