BNY Launches Stablecoin Reserve Fund for Issuers

BNY, one of the oldest banks in the U.S., has introduced a new money market fund aimed at assisting stablecoin issuers in meeting U.S. federal regulations. The BNY Dreyfus Stablecoin Reserves Fund is structured to hold cash-equivalent reserves relevant to stablecoins issued under the recently enacted GENIUS Act. This fund is being positioned as an essential infrastructure component for stabilizing the value of stablecoins and projecting the market to grow from its current size of $300 billion to $1.5 trillion by the end of the decade. Anchorage Digital, a federally chartered crypto bank, has made the initial investment in this fund. The initiative highlights the rapid growth and regulatory developments in the stablecoin space, emphasizing the importance of cash in the digital asset ecosystem and its role in shaping future capital markets. BNY aims to provide a necessary foundation for compliant stablecoin issuance at scale.

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