BNY has launched a money market fund designed to hold reserves for U.S. stablecoins issued under the recently enacted GENIUS Act regulatory framework.
The BNY Dreyfus Stablecoin Reserves Fund targets institutional stablecoin issuers and qualified institutional investors. The GENIUS Act, which became law in July 2025, established federal regulations for U.S. stablecoin issuers and specified which assets can serve as eligible reserves. Government money market funds like the newly launched BNY product meet these requirements once the legislation takes full effect. But so do plenty of existing money market funds.
For BNY, the world’s largest custodian, to issue a fund with the term “stablecoin reserves” should all but guarantee that an issuer that invests is complying with the reserve aspect of the law. From BNY’s perspective, this is a sensible marketing strategy.
Anchorage Digital, the first federally chartered crypto bank in the United States, provided the initial investment for the fund. Nathan McCauley, co-founder and CEO of Anchorage Digital, described the initiative as essential to “bridging the trust, transparency, and regulatory rigor that will define the next era of digital finance.”
BNY has established a substantial track record involving stablecoins over recent years, mainly for custody. The bank provides custody and related services for BlackRock’s management of the Circle Reserve Fund backing USDC, and also manages a portion of Circle’s cash reserves directly. It serves as custodian for both Ripple’s RLUSD stablecoin and Societe Generale FORGE’s USDCV stablecoin.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
