BNY (BK) is launching a money market fund, called the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), specifically tailored to stablecoin issuers like Tether and Circle Internet Group (CRCL), it said on Thursday.
The new fund is designed to hold the reserves for stablecoins to be issued under the recently signed Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The fund does not invest in stablecoins.
As part of the launch, the BSRXX has secured an investment from Anchorage Digital, a crypto platform that lets institutions transact in digital assets.
BNY Investments Dreyfus is the affiliated liquidity solutions provider of BNY (BK) and the flagship offering on BNY's Liquidity Direct platform. It supports stablecoin issuers by providing regulated money market funds as eligible reserves.
The GENIUS Act, enacted in July, established a federal regulatory framework for dollar-backed stablecoins, specifying the assets that are eligible for stablecoin issuers to hold as reserves. BSRXX can be used by stablecoin providers to hold their reserves once the legislation is effective.
The move comes amid a growing list of major financial institutions using blockchain technology and digital assets to modernize traditional financial mechanisms, all under the Trump administration's pro-crypto push. On Wednesday, for instance, Franklin Templeton (BEN) reportedly joined the bank-backed Canton Network to expand institutional access to its tokenized money market fund.
In October, BNY (BK) was said to have started testing tokenized deposits -- blockchain-based representations of commercial bank money -- for real-time, cross-border payments.
"Cash is the cornerstone of the digital asset ecosystem, enabling global capital markets to move toward an always-on, 24/7 environment," said Stephanie Pierce, deputy head of BNY Investments. "Stablecoins are at the forefront of this profound transformation," she added.
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