BNY Unveils Groundbreaking Regulated Reserves Fund Under GENIUS Act – A New Era for Crypto Compliance

Wall Street meets Web3 as BNY Mellon launches the first regulated reserves fund under the GENIUS Act.

The move signals institutional crypto adoption is accelerating—whether traditional finance is ready or not.

Here's what you need to know:

The GENIUS Play

BNY's new fund operates within strict regulatory guidelines, offering investors exposure to digital assets without the usual regulatory headaches.

Reserves Done Right

Unlike unregulated stablecoins, this fund maintains proper asset backing—because apparently that's revolutionary in crypto.

What This Means

Expect more TradFi players to follow suit now that BNY's cracked the code on compliant crypto products.

The irony? It took an old-school bank to show crypto how to play by the rules. Your move, DeFi.

Stablecoin reserve strategy and U.S. regulation

The fund is designed for U.S. stablecoin issuers operating under the GENIUS Act, which requires a regulated reserve strategy and specifies eligible backing assets. BNY’s offering, as a government money market fund, provides a clear and compliant vehicle for these reserves. 

“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.” 

Market analysis anticipates an expansion of the stablecoin ecosystem, with projections suggesting the global market could swell to approximately $1.5 trillion by 2030. This growth relies on regulatory clarity, which the GENIUS Act provides for U.S. issuers. By providing a 24/7 liquidity solution built upon the trust of a global financial institution, BNY is contributing infrastructure necessary for the long-term expansion and institutional acceptance of digital dollar transfers.

The fund’s broader impact

The move represents a bridge between traditional finance (TradFi) and the digital economy. The existence of a regulated reserve fund reduces systemic risk for U.S. dollar stablecoins, making them more reliable for moving capital.

The launch of the BNY Dreyfus Stablecoin Reserves Fund moves the stablecoin sector from a phase of regulatory ambiguity to one anchored by federal oversight and traditional financial infrastructure. 

Nathan McCauley, co-founder and CEO of Anchorage Digital, said, “Anchorage Digital is proud to provide the initial investment for this important initiative.” He added, “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.”

Also Read: a16z Urges Clear Implementation of the GENIUS Act