BNY Mellon announced the creation of the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a money‑market vehicle that will hold reserves for U.S. stablecoin issuers under the July 2025 GENIUS Act. The fund does not invest in stablecoins itself but provides a regulated framework that allows issuers to meet the Act’s 100 % reserve‑backing requirement.
The launch marks the first government‑money‑market fund authorized under the new legislation, positioning BNY as a key liquidity provider in the emerging stablecoin ecosystem. Anchorage Digital, the first federally chartered crypto bank, made the initial investment, underscoring the fund’s credibility and signaling institutional confidence.
BNY already manages custody for more than 80 % of digital‑asset ETFs in the U.S., Canada, and EMEA and administers over 50 % of tokenized fund assets worldwide. By adding a stablecoin reserves fund, the bank expands its digital‑asset service portfolio, creating a new fee‑generating channel and reinforcing its competitive moat as the stablecoin market is projected to reach $1.5 trillion by 2030.
The stablecoin market is expected to grow rapidly, with Citi forecasting $1.9 trillion by 2030 and Bernstein projecting $4 trillion by 2035. BNY’s entry into reserve management positions it to capture a significant share of this expanding market, while also providing issuers with a trusted, regulated custodian that meets the GENIUS Act’s disclosure and audit requirements.
Stephanie Pierce, Deputy Head of BNY Investments, said the launch “provides a regulated framework that enables stablecoin issuers to meet reserve requirements while giving them access to high‑quality liquidity.” Nathan McCauley, CEO of Anchorage Digital, added that the partnership “bridges the trust, transparency, and regulatory rigor that will define the next era of digital finance.”
BNY’s recent financial performance supports the strategic timing of the launch. In Q3 2025, the bank reported adjusted EPS of $1.91 and revenue of $5.08 billion, up from $1.94 and $5.03 billion in Q2 2025. The steady earnings growth reflects disciplined cost management and a strong mix of high‑margin custody and asset‑servicing revenue, giving BNY the financial flexibility to invest in new digital‑asset initiatives.
Analysts have upgraded BNY to a moderate buy, citing the new fund as a strategic expansion that enhances the bank’s digital‑asset footprint. The launch is expected to strengthen BNY’s position in a rapidly evolving regulatory landscape and to attract additional institutional clients seeking regulated liquidity solutions.
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