BNY Mellon Unveils Money Market Fund for Stablecoin Issuers Under New US Law
According to BNY Mellon, the BSRXX fund invests in US Treasuries, short-term bonds, overnight repos, and cash, aiming for a stable $1 share price to comply with reserve regulations.
BNY Mellon announced the launch of the BNY Dreyfus Stablecoin Reserves Fund (BSRXX) on June 13, designed to help US stablecoin issuers hold qualified reserves under regulatory requirements such as the GENIUS Act. The regulated fund invests in US Treasury securities, short-term bonds, overnight repo agreements backed by Treasuries, and cash, with a target share price of $1. It does not directly hold stablecoins but serves as a reserve vehicle for qualified institutional investors. Initial investment came from Anchorage Digital, and BNY projects the stablecoin market to grow from $300 billion to $1.5 trillion by 2030.
- Stablecoin: A cryptocurrency designed to maintain a stable value by pegging it to a reserve asset like the US dollar.
- Money Market Fund: An investment fund that holds short-term, high-quality securities, often used for liquidity management.
- GENIUS Act: A US law enacted in 2024 establishing regulatory requirements for certain financial products, including stablecoin-related investments.