BNY Mellon launched on November 13, 2025 the BNY Dreyfus Stablecoin Reserves Fund (BSRXX), a government money market fund designed for stablecoin issuers and institutional clients to hold liquid, regulated reserves. The relevance lies in connecting stablecoin reserves with U.S. Treasury assets under the framework of the GENIUS Act, impacting issuers, custodians and institutional liquidity managers.
The BSRXX operates under Rule 2a‑7 of the Investment Company Act of 1940 and, by design, does not invest in stablecoins but in highly liquid instruments: U.S. Treasury bills, bonds or notes with a maximum maturity of 93 days, overnight repurchase agreements backed by Treasury or cash, and cash. The structure seeks to maintain a stable value of $1.00 per share and to align with the federal rules introduced by the GENIUS Act in July 2025, according to the launch documentation.
The vehicle requires an initial minimum of $10,000,000 and shows a gross expense of 0.25% and a net expense of 0.18% effective through November 30, 2026; the fund’s yield was pending at the time of launch. Anchorage Digital made the initial investment, according to statements linked to the announcement, reinforcing the product’s institutional credentials.
“Cash is the cornerstone of the digital asset ecosystem”, said Stephanie Pierce, deputy head of BNY Investments, summarizing the fund’s intent to facilitate continuous liquidity for 24/7 markets. Nathan McCauley, co-founder and CEO of Anchorage Digital, added that the initiative marks “a new chapter for stablecoin infrastructure in the U.S.”; both statements were cited in the launch release. Technical definition: Rule 2a‑7 limits counterparties, maturities and credit quality to preserve the fund’s liquidity and stability of value.
Implications for BSRXX
Institutional adoption as offers a regulated and familiar option for issuers that need reserve assets compatible with legal requirements. While the fund is exposed to redemption pressures linked to large-scale minting or burning of stablecoins; simultaneous redemptions by multiple issuers could strain liquidity and jeopardize maintaining the $1.00 NAV, according to the fund’s legal sheet.
The BSRXX positions itself as a regulated bridge between stablecoin reserves and Treasury assets sanctioned by the GENIUS Act. The next milestone noted in the documentation is the term of the net fee through November 30, 2026, after which the effective cost for institutional investors can be assessed.
