BNY Mellon introduced the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a government money market fund designed for stablecoin issuers and qualified institutional investors to hold reserves in liquid assets. The launch arrives just over a week after a key regulatory alignment and offers a regulated, transparent route to house reserves backing stablecoins. It directly impacts issuers’ treasuries, custodians and liquidity managers seeking to reduce operational reserve risk.
BSRXX primarily invests in U.S. Treasury securities and overnight repurchase agreements and does not invest in stablecoins. The fund adheres to Rule 2a-7 and declares eligibility under the GENIUS Act, also which came into force in July 2025, aligning with traditional standards on liquidity and asset quality for money market funds. BNY projects the stablecoin market could scale to $1.5 trillion by 2030, a backdrop that frames the bet on institutional infrastructure.
In particular, the launch featured an initial investment from Anchorage Digital, a crypto bank with a federal charter, adding institutional traction to the debut. “Cash is the cornerstone of the digital asset ecosystem,” said Stephanie Pierce, Deputy Head of BNY Investments. “We see this fund as a way to bring leadership in liquidity and transparency,” she added. Nathan McCauley, cofounder and CEO of Anchorage Digital, said the initial contribution is key to “bridging trust and regulatory rigor” between banks and crypto issuers.
Implications for BNY Mellon
Additionally the product could ease the shift from opaque reserves to traditional assets, improving traceability and potentially increasing appetite from institutional counterparties. For traders and treasury teams, the fund promises greater predictability of liquidity and a reserve reference anchored in Treasuries and overnight repos, which can help reduce stress events from mass redemptions.
Also, there´s some risks remain material if it is not insured by the FDIC and there is a possibility of capital loss; minting and burning dynamics can trigger redemption spikes that strain the fund’s liquidity; and concentration of large shareholders, alongside market risk in the underlying instruments, may amplify volatility.
The fund offers an institutional solution for stablecoin reserves backed by traditional money market instruments. Immediate validation comes with Anchorage Digital’s initial investment, and the evolution of flows and redemption management over the coming quarters will be the key operational indicator to watch for treasury teams and traders.
