The fund is intended to enable U.S. stablecoin issuers and other qualified institutional investors acting for themselves or in a fiduciary, advisory, agency, brokerage, custodial, or similar capacity. The fund is designed to hold the reserves for stablecoins to be issued under the Guiding and Establishing National Innovation for U.S. Stablecoins (“GENIUS”) Act. The fund does not invest in stablecoins.
The stablecoin market is expected to grow significantly over the next three to five years, enabled by the GENIUS Act, which provides a regulatory framework for US stablecoin issuers, as well as increasing client adoption. Analysis suggests that the stablecoin market could reach $1.5 trillion by 2030.
“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, and we are proud to provide our liquidity leadership and expertise to stablecoin issuers with the launch of the BNY Dreyfus Stablecoin Reserves Fund.”
As part of the launch, the fund has secured an initial investment from Anchorage Digital, a global cryptocurrency platform that enables institutions to transact in digital assets. Anchorage Digital is the first federally chartered crypto bank in the U.S.
“Anchorage Digital is proud to provide the initial investment for this important initiative,” stated Nathan McCauley, Co-Founder and CEO of Anchorage Digital. “BNY’s leadership in liquidity and the GENIUS Act framework together mark a new chapter for stablecoin infrastructure in the U.S. As the first federally chartered crypto bank, we see efforts like this as essential to bridging the trust, transparency, and regulatory rigor that will define the next era of digital finance.”
BNY Investments Dreyfus is the affiliated liquidity solutions provider of BNY and the flagship offering on BNY’s industry-leading Liquidity Direct platform. A top 10 US money market fund sponsor, BNY Investments Dreyfus supports stablecoin issuers by providing regulated money market funds as eligible reserves.
Enacted in July 2025, the GENIUS Act established a federal regulatory framework for U.S. stablecoins, specifying the assets that are eligible for stablecoin issuers to hold as reserves. A government money market fund, the BNY Dreyfus Stablecoin Reserves Fund, can be used by U.S. stablecoin issuers to hold their stablecoin reserves once the GENIUS Act is effective.
A recognized leader in digital assets, BNY provides fund services for over 80% of the digital asset exchange-traded products in the U.S., Canada and EMEA, and provides fund administration and custody for over 50% of the tokenized fund assets globally.
Source: BNY
