TLDR:
- BNY Mellon’s BSRXX fund gives U.S. stablecoin issuers a regulated reserve-investment vehicle under the GENIUS Act.
- The fund invests in ultra-short-duration, liquid assets but does not hold stablecoins themselves.
- The GENIUS Act (July 2025) mandates stablecoin reserves must consist of high-quality, short-maturity securities.
- The stablecoin market may hit ~$1.5 trillion by 2030, increasing demand for compliant reserve instruments.
The The Bank of New York Mellon Corporation (BNY Mellon) has introduced a new money-market fund tailored specifically for stablecoin issuers seeking compliance with U.S. regulation. The fund, dubbed BNY Dreyfus Stablecoin Reserves Fund (BSRXX), addresses the reserve asset requirements set out in the new federal law.
It allows issuers of stablecoins to place funds in a regulated vehicle that meets the conditions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (“GENIUS Act”), which took effect in July 2025. Consequently, this step signals a deeper integration of traditional finance infrastructure into the stablecoin ecosystem.
New Fund for Stablecoin Reserves Meets GENIUS Act Demands
BNY Mellon’s fund is explicitly structured to serve issuers of U.S. dollar-pegged stablecoins and other qualified institutional investors in meeting the GENIUS Act’s requirements. According to Bloomberg, the fund accepts cash or short-duration government securities rather than investing in stablecoins themselves.
Under the GENIUS Act statutory framework, stablecoin issuers must hold highly liquid reserves backing each token, and the new fund offers one regulated vehicle that satisfies those criteria.
BNY Mellon says the fund is not tokenised and remains a traditional money-market vehicle, but it targets the specific needs of digital-asset issuers. The vehicle carries a ticker (BSRXX) and is marketed to stablecoin issuers seeking to funnel issuance proceeds into eligible assets under the new law.
This move comes at a time when the stablecoin sector continues to expand and regulatory scrutiny intensifies globally. The alignment of the fund with regulatory mandates may ease the treasury burden for issuers and anchor them more firmly to traditional finance instruments.
Implications for Crypto Markets and Reserve Management
By launching BSRXX, BNY Mellon positions itself as a facilitator of compliance infrastructure for stablecoin issuers. The fund leverages its global custody and asset-management capabilities, BNY reports it oversees some $57.8 trillion in assets under custody and administration as of September 2025.
From an operational standpoint, issuers now have a regulated pathway to invest their fiat inflows (from token issuance) into short-term, ultra-liquid instruments rather than leaving them idle or in less-structured holdings. This structure may reduce reserve risk and enhance transparency of backing for U.S. stablecoins.
The development may also influence market participants by setting a standard of reserve placement which, when replicated, could become a backbone of issuer liquidity strategies. Meanwhile, regulatory watchers may view this as evidence of mainstream finance absorbing elements of the digital-asset ecosystem.
Stablecoin market size projections vary, but some estimates suggest the space could grow significantly, BNY materials reference a potential market of approximately $1.5 trillion by 2030. With this in mind, vehicles like BSRXX may become more central to the infrastructure supporting token issuance and settlement.
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Source: https://blockonomi.com/new-bny-fund-lets-stablecoin-issuers-meet-genius-act-reserve-rules/