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The post BNY Launches Stablecoin Reserve Fund for Issuers, Eyeing $1. 5T Market appeared com. 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 doesn’t hold any stablecoins itself but acts as a regulated vehicle for backing them. The move comes as stablecoins, a set of cryptocurrencies with prices tied to fiat money like the U. S. dollar, are rapidly growing as a means of payment, with regulations addressing this sector of the broader crypto market being put in place across the globe. The stablecoin market could reach to $1. 5 trillion by the end of the decade from its current $300 billion market size, BNY projected. “Cash is the cornerstone of the digital asset ecosystem, enabling global capital markets to move toward an always-on, 24/7 environment,” Stephanie Pierce, deputy head of BNY Investments, said in a statement. “Stablecoins are at the forefront of this profound transformation.” With the fund, BNY aims to provide a key piece of infrastructure for stablecoin issuers to maintain the value of the tokens. Global asset manager BlackRock, for example, launched the Circle Reserve Fund, which manages $66 billion of U. S. Treasuries and repos serving as reserve for the USDC stablecoin. Anchorage Digital, a federally chartered U. S. crypto bank, provided the fund’s initial investment. “This fund represents the infrastructure needed to make compliant stablecoin issuance possible at scale,” said Anchorage CEO Nathan McCauley in a statement. The fund is open to qualified institutional investors, including those acting in custodial, brokerage or fiduciary roles. BNY says the move is.