BNY Drives Rapid Shift Toward Regulated Digital Liquidity With New Reserve Fund

By admin On Nov 15, 2025

Surging demand for regulated digital liquidity is reshaping tokenized finance as institutions rapidly converge on safer, government-backed structures poised to redefine market confidence and unlock the next wave of always-on transactional efficiency.

Institutional Paths Into Tokenized Markets With New Reserve Framework

A broad shift toward regulated digital liquidity is accelerating as institutions pursue safer structures for tokenized finance. Global financial services company BNY (NYSE: BK) announced on Nov. 13 that it introduced the BNY Dreyfus Stablecoin Reserves Fund to expand reserve options for U.S. stablecoin issuers under the GENIUS Act.

“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. She added:

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.

The vehicle is structured as a government money market product intended for institutions operating in fiduciary, advisory, agency, custodial, or brokerage capacities, and it excludes direct stablecoin investments.

Anchorage Digital supplied the initial allocation, with CEO Nathan McCauley stating: “Anchorage Digital is proud to provide the initial investment for this important initiative.” He continued: “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 operates as the organization’s affiliated liquidity arm and supports stablecoin issuers with regulated reserve options through its Liquidity Direct platform. BNY, which provides services to most major digital asset exchange-traded products across the U.S., Canada, and EMEA, also oversees fund administration and custody for more than half of tokenized fund assets.

The GENIUS Act, enacted in July 2025, established federal reserve requirements for U.S. payment stablecoins, making government money market funds such as the new BSRXX eligible reserve vehicles once the statute becomes effective. While critics highlight liquidity and redemption risks tied to stablecoin reserve concentration, advocates argue that regulated structures could reduce systemic uncertainty and strengthen institutional confidence in tokenized markets.

FAQ ⏰

Why does regulated liquidity matter for stablecoin issuers?
It provides compliant reserve structures that may strengthen market integrity and institutional trust.

How could the GENIUS Act affect stablecoin reserves?
The statute enables certain government money market funds to qualify as eligible reserve vehicles.

What signals institutional demand for tokenized finance?
Growing adoption of regulated liquidity products suggests expanding interest in safer digital-asset infrastructure.

How might investors view government-backed reserve structures?
They may perceive them as mechanisms that could reduce systemic exposure and improve transparency.

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