BNY, one of the oldest banks in the U.S., is rolling out a new money market fund aimed at helping stablecoin issuers meet Federal Reserve requirements under U.S. regulations, the firm announced on Thursday.

The **BNY Dreyfus Stablecoin Reserves Fund (BSRXX)** is designed to hold cash-equivalent reserves for stablecoins issued under the GENIUS Act, a federal law enacted earlier this year that created a legal framework for U.S. dollar-pegged digital currencies. The fund itself does not hold any stablecoins but acts as a regulated vehicle for backing them.

This move comes as stablecoins — a category of cryptocurrencies with prices tied to fiat money such as the U.S. dollar — continue to grow rapidly as a means of payment. Regulatory frameworks addressing this sector of the broader crypto market are being established worldwide.

BNY projects that the stablecoin market could grow from its current $300 billion size to as much as $1.5 trillion by the end of the decade.

“Cash is the cornerstone of the digital asset ecosystem, enabling global capital markets to move toward an always-on, 24/7 environment,” said Stephanie Pierce, deputy head of BNY Investments. “Stablecoins are at the forefront of this profound transformation.”

With the launch of this fund, BNY aims to provide critical infrastructure for stablecoin issuers to maintain the value of their tokens.

Industry players are also moving in this direction. Global asset manager BlackRock, for example, launched the Circle Reserve Fund, which manages $66 billion of U.S. Treasuries and repurchase agreements serving as reserves for the USDC stablecoin.

The fund’s initial investment was provided by Anchorage Digital, a federally chartered U.S. crypto bank. Nathan McCauley, CEO of Anchorage, stated, “This fund represents the infrastructure needed to make compliant stablecoin issuance possible at scale.”

The BNY Dreyfus Stablecoin Reserves Fund is open to qualified institutional investors, including those acting in custodial, brokerage, or fiduciary roles.

BNY says this initiative is part of a broader push to support the growing overlap between traditional finance and blockchain-based assets.
https://bitcoinethereumnews.com/tech/bny-launches-stablecoin-reserve-fund-for-issuers-eyeing-1-5t-market/