BNY launches stablecoin reserves fund as it eyes $1.5 trillion market

BNY, one of the oldest banks in the U.S., has unveiled a new stablecoin reserves fund targeted at boosting institutional adoption of cryptocurrencies.

The global financial services firm announced the launch of its money market fund dubbed BNY Dreyfus Stablecoin Reserves Fund on November 13. The fund, BSRXX, is for U.S. stablecoin issuers and other qualified industry participants who meet the Federal Reserve requirements set out in the U.S. stablecoin regulation GENIUS. 

BSRXX will not, in itself, hold any stablecoins; rather, BNY is offering it as a regulated platform for cash-equivalent reserves.

BNY expands footprint amid stablecoin market growth

Stablecoins continue to attract growing adoption and investment, even as firms take advantage of the clarity provided by regulatory frameworks such as the GENIUS Act. Notably, experts say the stablecoin market could grow rapidly over the next three to five years, reaching $1.5 trillion by 2030.

BNY’s fund looks to bolster this space, the bank said.

Issuers can integrate with the fund as themselves or through a player acting as an advisory firm, agency, custodian, brokerage, or fiduciary. BNY’s initiative incorporates Anchorage Digital, the first federally chartered crypto bank in the U.S.

Commenting, Anchorage Digital co-founder and chief executive officer Natha McCauley, added:

Tether and Circle are the two top stablecoin issuers today, with over $180 billion and $76 billion in market cap, respectively, for USDT and USDC. USDT issuer Tether recently launched a U.S. arm.