BNY Launches Stablecoin Reserve Fund for Institutional Liquidity

In Brief

• BNY launches stablecoin reserve fund BSRXX for institutional clients under new U.S. law
• BSRXX supports GENIUS Act-compliant reserves, not direct stablecoin investments
• Anchorage Digital provides initial backing, signaling institutional crypto adoption

BNY introduced the BNY Dreyfus Stablecoin Reserves Fund (BSRXX) to support stablecoin issuers under a regulated framework. The fund enables qualified institutions to hold reserves aligned with the GENIUS Act, enacted in July 2025.

It is structured as a government money market fund and does not invest in stablecoins directly. Instead, it holds high-quality liquid assets eligible for use as stablecoin reserves under U.S. federal law.

The GENIUS Act created clear reserve guidelines for U.S. dollar-backed stablecoins issued by licensed entities. This fund provides a compliant solution for issuers seeking secure, transparent, and regulatory-approved reserve storage.

Anchorage Digital provided the fund’s first investment, signaling institutional readiness for digital asset infrastructure. As a federally chartered crypto bank, Anchorage plays a key role in bridging traditional finance with blockchain-based solutions.

BNY manages the fund through its affiliate, BNY Investments Dreyfus, using the Liquidity Direct platform. The platform supports institutional liquidity needs and ranks among the top 10 U.S. money market sponsors.

BNY Expands Digital Asset Infrastructure with New Fund

The fund’s launch aligns with projected stablecoin growth, which analysts estimate could reach $1.5 trillion in market size by 2030. This projection reflects rising adoption and regulatory clarity across the digital payments sector.

BSRXX reserves may fluctuate due to minting or burning of stablecoins by participating issuers. Redemption waves during market stress could affect fund stability, though risk controls are in place to manage redemptions.

Institutional Demand Drives Regulated Liquidity Innovation

BNY supports more than 80% of U.S., Canadian, and EMEA-based digital asset ETPs. It also provides custody or fund services for over half of the world’s tokenized fund assets.

As of September 2025, BNY oversees $57.8 trillion in custody and $2.1 trillion in managed assets. The launch of BSRXX reflects BNY’s continued expansion into secure and compliant digital financial infrastructure.