BNY has debuted a specialized fund tailored for stablecoin reserves, aligning with recent US regulatory advancements.

The move adds to other initiatives across the crypto space as regulatory developments boost innovation.

With the stablecoin market capitalization projected to reach $1.5 trillion by 2030, BNY’s launches could be one of the projects that fuel further growth. Catering to institutional confidence via compliance is a major step, the bank said.

BNY launches stablecoin reserves fund

BNY Investments, a division of The Bank of New York Mellon Corporation, announced the launch of the BNY Dreyfus Stablecoin Reserves Fund (BSRXX) on November 13, 2025.

BSRXX is a government money market fund engineered to serve as a compliant reserve vehicle for stablecoin issuers.

This product emerges in direct response to the GENIUS Act, enacted by Congress in July 2025.

The BSRXX fund, offered through BNY’s flagship Liquidity Direct platform, allows US-based stablecoin issuers and qualified institutional investors to park reserves in a regulated environment.

BNY, as one of the top 10 US money market fund sponsors by assets under management, positions this offering as a cornerstone for liquidity in the evolving digital asset landscape.

It adds to initiatives like the bank’s custody solution, and plans to make a foray into the $7 trillion money market industry.

While the fund aims for capital preservation, it carries inherent risks typical of money market instruments.

Investors face potential principal losses, especially amid fluctuations from stablecoin minting or burning activities, or during periods of market stress when redemption demands could strain liquidity.

Nathan McCauley, co-founder and chief executive of Anchorage Digital, hailed the development as “essential to bridging the trust, transparency, and regulatory rigor that will define the next era of digital finance.”

Further expanding BNY’s leadership in digital assets

The introduction of the BSRXX fund represents a strategic escalation in BNY Mellon’s digital asset ambitions, building on its storied 240-year legacy as a custodian of global capital.

With $57.8 trillion in assets under custody and administration, and $2.1 trillion under management, BNY is uniquely equipped to navigate the intersection of traditional finance and blockchain innovation.

Stephanie Pierce, deputy head of BNY Investments, commented:

“Cash is the cornerstone of the digital asset ecosystem, enabling global capital markets to move toward an always-on, 24/7 environment. Stablecoins are at the forefront of this profound transformation, and we are proud to provide our liquidity leadership and expertise to stablecoin issuers.”

This launch marks BNY’s dominance in the sector, where it already services over 80% of digital asset exchange-traded products across the US, Canada, and Europe, the Middle East, and Africa regions.

By extending its liquidity management tools to stablecoin reserves, BNY addresses a critical gap in the ecosystem with the need for robust, regulated backstops that foster broader adoption.

The GENIUS Act not only legitimizes stablecoins as payment instruments but also imposes stringent reserve requirements, creating demand for specialized products like BSRXX.

Competitors, including major banks like JPMorgan and State Street, have dabbled in crypto custody, but BNY’s scale and regulatory alignment give it a pronounced edge.

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