BNY Mellon announced the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a money market fund designed to custody reserves of stablecoin issuers in the U.S. The initiative responds to the liquidity and safety requirements set by the GENIUS law.
The BSRXX invests exclusively in short-term U.S. Treasury securities. With overnight repurchase agreements backed by Treasury or cash, and direct cash positions. The maturities limited to 93 days and a target of at least 99.5% in government-backed instruments.. The design aims to maintain a target price of $1 per share, seeking to offer stablecoin issuers an “ultra-safe and highly liquid” vehicle compatible with the GENIUS law requirements.
The opening included an initial investment from Anchorage Digital, which communications present as institutional backing for the product. Stephanie Pierce, deputy head of BNY Investments, said that “cash is the cornerstone of the digital asset ecosystem, allowing capital markets to move toward a 24/7 environment.” Nathan McCauley, CEO of Anchorage Digital, added that the combination of BNY’s initiative and the regulatory framework “marks a new chapter for stablecoin infrastructure in the U.S.”; both quotes are attributed to institutional representatives.
In addition to the BSRXX, the firm has pushed other bets in digital assets. As it acts as custodian for Ripple’s RLUSD stablecoin, launched in October 2025 a tokenized AAA CLO fund with Securitize (STAC) and collaborated with Goldman Sachs in July 2025 on a platform for tokenized money market funds. These moves position BNY Mellon as a relevant player at the intersection between RWA tokenization and institutional liquidity management.
Implications for BSRXX
The offering can standardize reserve practices among stablecoin issuers. And steer institutional flows toward Treasury assets and repos, reducing reliance on less liquid instruments. For crypto treasuries, it provides an option ostensibly more aligned with regulatory requirements. For traders and markets, it may translate into less uncertainty about the reserve composition of large issuers.
The fund concentrates exposure in short-term government assets and repo operations. So the main operational vulnerability would be liquidity in repo markets under stress or execution risks. For adoption, it will depend on eligibility criteria and issuers’ preference for custodians and counterparties.
The BSRXX fund has been active since November 13, 2025 and serves as a reference for issuers that must adjust reserves to the GENIUS framework; the immediate operational takeaway is the availability of an institutionally managed instrument that aligns reserve liquidity with current regulatory standards.
