BNY Launches Stablecoin Reserve Fund for Issuers

BNY has announced the launch of the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), aimed at providing infrastructure for stablecoin issuers to comply with U.S. federal reserve requirements. This fund will hold cash-equivalent reserves for stablecoins issued under the GENIUS Act, which legally supports U.S. dollar-pegged digital currencies. The fund originates with an initial investment from Anchorage Digital, a federally chartered crypto bank. BNY anticipates significant growth in the stablecoin market, projecting it will expand from its current $300 billion to $1.5 trillion by the end of the decade. This initiative aligns with the increasing global adoption of stablecoins, seen as crucial for facilitating payments in a digital economy. Stephanie Pierce from BNY highlighted that cash liquidity is vital for the digital asset ecosystem, and stablecoins are central to this transformation. The fund is designed for qualified institutional investors, including those in custodial and brokerage roles, providing an essential regulatory framework for stablecoin issuance at scale.

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