BNY Accelerates the Move Toward Regulated Digital Liquidity With Its New Reserve Fund

Institutional Paths Into Tokenized Markets With the New Reserve Framework

The shift toward regulated digital liquidity is accelerating as institutions search for safer and more transparent ways to enter tokenized finance.

On November 13, BNY (Bank of New York Mellon) announced the launch of the BNY Dreyfus Stablecoin Reserves Fund, a new reserve product designed to support U.S. stablecoin issuers under the GENIUS Act.

BNY: Cash is the foundation of the digital asset ecosystem

According to Stephanie Pierce, Deputy Head of BNY Investments, cash remains the core of the digital asset ecosystem, especially as global financial markets move toward 24/7 operations.
She emphasized that stablecoins are driving this transformation and that BNY aims to offer strong liquidity solutions and expertise to stablecoin issuers through the new fund.

A product for institutions — not direct stablecoin investments

The new vehicle is structured as a government money market fund, intended for institutions such as custodians, brokers, advisors, and asset managers.
It does not invest directly in stablecoins, but instead provides a regulated and transparent reserve option for stablecoin issuers.

Anchorage Digital provides the initial investment

Anchorage Digital, the first federally chartered crypto bank in the U.S., supplied the initial allocation.
CEO Nathan McCauley stated that this initiative represents a major step toward improving trust, transparency, and regulatory clarity for stablecoin infrastructure.

BNY’s role in the tokenization ecosystem

BNY Dreyfus serves as BNY’s liquidity arm, offering regulated reserve options through the Liquidity Direct platform.
BNY also oversees fund administration and custody for more than half of all tokenized fund assets across the U.S., Canada, and EMEA.

The GENIUS Act and its impact

The GENIUS Act, enacted in July 2025, established federal reserve requirements for U.S. payment stablecoins.
This allows government money market funds like BSRXX to be used as official reserve vehicles once the law takes effect.

While some critics warn about potential liquidity and redemption risks if reserves become too concentrated, many supporters argue that regulated structures can reduce systemic uncertainty and strengthen institutional confidence in tokenized markets.