BNY (NYSE: BK), a financial services company, announced the launch of the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a money market fund intended to support institutional adoption of digital assets in the liquidity ecosystem. The fund is meant to enable U.S. stablecoin issuers and other qualified institutional investors acting “for themselves or in a fiduciary, advisory, agency, brokerage, custodial, or similar capacity.”
The fund is intended to hold the reserves for stablecoins that are to be issued under the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The fund does “not invest in stablecoins.”
The stablecoin market is set to grow over the next three to five years, enabled by the GENIUS Act, which offers a regulatory framework for US stablecoin issuers, as well as increasing client adoption. Analysis suggests that the stablecoin market “could reach $1.5 trillion by 2030.”
Stephanie Pierce, Deputy Head of BNY Investments said that stablecoins are at the center or core of this transformation, and they aim to offer their liquidity expertise to stablecoin issuers with the introduction of the BNY Dreyfus Stablecoin Reserves Fund.
As part of the roll-out, the fund has acquired an initial investment from Anchorage Digital, a crypto platform that allows institutions to transact in digital assets.
Nathan McCauley, Co-Founder and CEO of Anchorage Digital said that BNY’s leadership in liquidity and the GENIUS Act framework together mark a new chapter for stablecoin infrastructure in the US.
As the federally chartered crypto bank, they see “efforts like this as essential to bridging the trust, transparency, and regulatory rigor that will define the next era of digital finance.”
BNY Investments Dreyfus is the affiliated liquidity solutions provider of BNY and the offering on BNY’s Liquidity Direct platform. A US money market fund sponsor, BNY Investments Dreyfus supports stablecoin issuers “by providing regulated money market funds as eligible reserves.”
Enacted in July of this year, the GENIUS Act established a federal regulatory framework for U.S. stablecoins, specifying the “assets that are eligible for stablecoin issuers to hold as reserves.”
A government money market fund, the BNY Dreyfus Stablecoin Reserves Fund, may now be used by U.S. stablecoin issuers to “hold their stablecoin reserves once the GENIUS Act is effective.”
As noted in the update, BNY offers fund services for more than 80% of the digital asset exchange-traded products in the US, Canada and EMEA, and provides fund administration and custody for more than 50% of the tokenized fund assets internationally.