A major shift is underway in how stablecoin issuers will be allowed to store customer funds in the United States, and one of America’s oldest financial institutions is moving to seize that moment.
Key Takeaways:
- BNY launched a new money-market fund designed specifically for stablecoin issuers under the new GENIUS Act requirements.
- The fund holds only ultra-short-term securities to meet upcoming U.S. reserve rules.
- Anchorage Digital became the first investor, as stablecoin supply rapidly expands.
- Banking groups still warn that stablecoins may pose risks even with stricter regulations.
BNY has begun offering a specialized money-market product crafted specifically for companies that mint dollar-pegged tokens — an early signal of how the financial world is reshaping itself around Washington’s new regulatory stance.
Rather than waiting for enforcement deadlines, BNY is rolling out infrastructure months in advance, anticipating that stablecoin firms will need compliant investment vehicles long before the rules formally kick in.
A Fund Engineered Around the GENIUS Act
The new vehicle — the BNY Dreyfus Stablecoin Reserves Fund (BSRXX) — centers on one key idea: liquidity.
The GENIUS Act, signed into law this year by President Donald Trump, forces U.S. stablecoins to keep their backing assets in extremely short-duration, high-quality instruments.
In other words, the era of stablecoin issuers parking reserves in speculative or long-dated assets is over.
BSRXX only holds securities with maturities capped at 93 days, a structure designed to meet the strictest interpretation of the new legal framework. BNY’s Stephanie Pierce said the bank launched the product early so issuers can reposition before the new regime becomes fully binding.
Anchorage Digital Becomes the First to Step In
Anchorage Digital — the first federally chartered crypto custodian — has already taken the lead by putting capital into the new fund.
The firm is simultaneously working with Tether on a U.S.–compliant version of USDT, showing how quickly major issuers are aligning themselves with Washington’s expectations.
A Market Growing Too Fast for Old Infrastructure
The scale of the stablecoin market makes this shift urgent.
Supply has surged by over two-thirds in a year, reaching approximately $305 billion, and major banks now expect explosive growth from here. Citi estimates that global stablecoin circulation could hit $1.9 trillion in normal conditions and possibly $4 trillion if adoption accelerates.
As supply expands, issuers must find safe, yield-producing places to store the dollars they collect from users.
Tether — the largest player — historically held a mix of Treasuries, gold, Bitcoin and other assets. But in the U.S. market, those allocations are no longer permissible under the new statute.
BNY Deepens Its Digital Footprint
BNY has spent the past few years embedding itself deeper into the digital-asset world, working with institutions like BlackRock, WisdomTree, and Goldman Sachs on blockchain payment and tokenization projects.
The bank already manages reserves for other major stablecoins, including those issued by Circle and Ripple, and sees the GENIUS Act as a catalyst for traditional finance to take on even more responsibility in the stablecoin ecosystem.
Not Everyone Is Convinced Stablecoins Are Safe — Even With the New Rules
The GENIUS Act was designed to prevent liquidity crises — ensuring reserves can be liquidated within hours if redemption pressure emerges.
But some regulators and banking groups believe the industry still poses systemic risks.
The Bank Policy Institute recently argued that past de-peggings illustrate how fragile confidence can be, warning that even properly backed coins may strain traditional lenders during market panics.
Their conclusion: stricter rules help, but stablecoins remain a source of stress for borrowers, lenders, and retail users during periods of crypto instability.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/bny-unveils-first-money-market-fund-built-for-u-s-stablecoin-rules/
