- BNY Mellon introduces the Dreyfus Stablecoin Reserves Fund (BSRXX) to meet new U.S. stablecoin reserve rules.
- Anchorage Digital becomes the fund’s first institutional investor amid rising demand for compliant stablecoin infrastructure.
- The $315 billion stablecoin market could surge to $4 trillion, intensifying demand for US-backed securities.
The Bank of New York Mellon Corp. (BNY Mellon) has unveiled the Dreyfus Stablecoin Reserves Fund (BSRXX), one of the first U.S. money-market funds tailored to the regulatory needs of stablecoin issuers under the recently enacted GENIUS Act.
This fund marks a significant structural bridge between traditional finance (TradFi) and digital asset infrastructure, offering stablecoin providers a compliant vehicle to park issuance proceeds while maintaining full regulatory alignment.
The GENIUS Act, signed into law by President Donald Trump in July 2025, mandates that dollar-backed stablecoins maintain reserves exclusively in safe, short-duration instruments, limiting exposure to longer-term or higher-risk securities.
BNY Mellon’s BSRXX fund adheres to these rules by investing solely in assets with maturities of 93 days or less, ensuring immediate liquidity and regulatory clarity.
“We wanted to make this available early, ahead of enforcement timelines,” said Stephanie Pierce, deputy head of BNY Investments.
The new structure effectively anticipates the compliance infrastructure stablecoin issuers will require once the Act’s provisions take effect — a move that places BNY Mellon at the vanguard of regulated digital finance.
The stablecoin sector’s rapid expansion underscores the urgency of compliant yield and custody solutions. Data from DeFiLlama shows total outstanding stablecoin value has surged 68.5% year-over-year to $305 billion. Analysts at Citigroup Inc. forecast issuance could reach $1.9 trillion under base conditions and $4 trillion in a bull scenario, highlighting the scale of liquidity management challenges ahead.
GENIUS Act Could Centralize Stablecoin Oversight Under US Regulators
The GENIUS Act’s liquidity and disclosure mandates have accelerated a recentralization of stablecoin reserves under U.S. regulatory oversight. By enforcing short-duration, fully collateralized holdings, the Act aims to mitigate systemic risk while preserving redemption reliability during market stress events.
In practice, this could shift billions in stablecoin reserve flows toward regulated custodians such as BNY Mellon, effectively integrating a parallel crypto liquidity layer into the broader U.S. financial system.
However, traditional banking groups remain cautious. The Bank Policy Institute (BPI), representing major U.S. lenders, recently published a report noting that even with these protections, stablecoins may still expose retail investors and borrowers to redemption and liquidity risks during periods of crypto volatility.
Currently, leading issuers such as Tether, Circle, and Ripple rely on short-term Treasuries and bank deposits to collateralize their reserves. Tether’s portfolio, for instance, spans U.S. Treasury bills, gold, and Bitcoin, though the new U.S. regulatory perimeter sharply restricts what reserve assets may back tokens offered domestically.
BNY Mellon already provides custody and fund services for several major stablecoin issuers and has deep collaborative ties with BlackRock, WisdomTree, and Goldman Sachs on blockchain-linked projects. The BSRXX fund thus extends an existing digital strategy into a dedicated compliance-first product suite for stablecoin liquidity.
The global stablecoin market valuation now stands at $315 billion, according to Coinmarketcap data, with key stakeholders Circle reporting 212% increase in profits in its Q3 earnings published on Wednesday.
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Source: https://coinedition.com/bny-mellon-launches-bsrxx-a-genius-act-compliant-fund/
