BNY Mellon’s BSRXX Stablecoin Fund Targets GENIUS Act
BNY Mellon has launched the BNY Dreyfus Stablecoin Reserves Fund (ticker BSRXX), a specialized money market fund designed to help institutional stablecoin issuers meet GENIUS Act requirements. The fund invests exclusively in ultra-safe, short-term securities with maturities up to 93 days, ensuring one-to-one backing in U.S. Treasuries and cash equivalents. By providing a regulated platform for stablecoin reserves, the BSRXX fund strengthens liquidity infrastructure and market confidence across global digital finance.
Anchorage Digital, the first federally chartered crypto bank in the U.S., has made an initial investment in the fund, highlighting growing institutional demand. As custodian for Circle’s USDC and Ripple’s XRP reserves, BNY Mellon offers stablecoin issuers modest returns on their reserve assets while maintaining Federal Reserve standards. Market data from DeFiLlama shows the stablecoin market reached $305 billion, up 68.5% year-on-year, and Citi projects issuance could hit $4 trillion by 2030 under clear regulatory frameworks.
The BSRXX fund enables stablecoin providers to comply with the GENIUS Act via direct investment or through registered advisors, custodians, or brokers. By centralizing cash-equivalent reserve management, the fund reduces operational risks and supports 24/7 global capital markets. Traders should watch for potential yield shifts and liquidity flows as more issuers adopt regulated reserve structures.
Bullish
The launch of the BSRXX fund is likely bullish for the stablecoin market. In the short term, it enhances liquidity and confidence by offering a regulated, high-quality reserves vehicle that meets GENIUS Act standards. This could attract more institutional capital, driving demand for compliant stablecoins and related trading volumes. Over the long term, centralized reserve management and clear regulatory alignment reduce issuer risk and operational friction, setting the stage for expanded issuance and wider adoption. Traders may see yield differentials and liquidity shifts favor funds and coins tied to robust reserve structures, reinforcing positive sentiment toward the stablecoin sector.