BNY Mellon Launches Money Market Fund for Stablecoin Reserves

Thursday Nov 13 2025 19:20

Duration

2 min

  1. 1. Fund Objectives and Strategy

  2. 2. Support from Anchorage Digital

  3. 3. BNY Mellon's Foray into Digital Assets

  4. 4. The Rise of Stablecoins

Global financial giant BNY Mellon has announced the launch of a money market fund specifically designed to hold cash reserves for US stablecoin issuers. The fund aims to provide a regulatory-compliant solution for meeting the requirements of the GENIUS Act.

Fund Objectives and Strategy

According to a Thursday announcement, the fund is accessible to US stablecoin issuers and other qualified institutional investors operating in fiduciary, agency, advisory, brokerage, or custodial roles. It's designed to hold the cash reserves mandated by the GENIUS Act, the July 2025 law establishing the first federal framework for US stablecoins and defining the standards for their backing assets. Crucially, the fund will *not* invest directly in stablecoins. Fund documents reveal that it will invest in short-term US Treasury securities, overnight repo backed by Treasurys or cash, and cash holdings. It aims to maintain a stable $1 share price and at least 99.5% exposure to government-backed instruments, with shares intended to serve as reserves for outstanding payment stablecoins.

Support from Anchorage Digital

Anchorage Digital, a federally chartered digital asset bank in the US, provided the fund’s initial investment. Nathan McCauley, co-founder and CEO of the bank, stated that the bank views this move from BNY “as essential to bridging the trust, transparency, and regulatory rigor that will define the next era of digital finance.”

BNY Mellon's Foray into Digital Assets

The new fund follows BNY’s recent partnership with Securitize to develop a tokenized vehicle offering exposure to AAA-rated collateralized loan obligations onchain. BNY is also exploring tokenized deposits to power a $2.5 trillion daily payment network, according to Bloomberg.

The Rise of Stablecoins

Since the passage of the GENIUS Act in the US, the stablecoin landscape has become increasingly competitive. Data from DefiLlama indicates that the current stablecoin market exceeds $305 billion, with BNY analysts predicting it could reach $1.5 trillion by the end of the decade. While the market has been dominated by established players such as Tether’s USDt (USDT) and Circle’s USDC (USDC), new entrants are rapidly emerging. In March, World Liberty Financial, a crypto venture backed by former US President Donald Trump, launched USD1, a stablecoin pegged to the US dollar. It is now the seventh-leading stablecoin by market capitalization, valued at $2.86 billion. Furthermore, MetaMask announced the launch of its dollar-backed stablecoin, MetaMask USD (mUSD), which will be integrated into its Web3 wallet. The innovation surrounding stablecoins isn't confined to the US. In Europe, nine banks convened in September to develop a euro-denominated stablecoin aimed at challenging the US dollar’s dominance in the sector, with a launch planned for the second half of 2026.

Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

Default Author Avatar

Written by:

Noah Lee

Asset List

View Full List
Most Traded Commodities Indices Crypto Shares Forex
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now

Latest

View all
brent crude oil

Thursday, 13 August 2026

Duration

5 min

Oil Prices Tumble: Demand and Inventory Build
gold-trading

Wednesday, 12 August 2026

Duration

7 min

Gold Price Today, August 13: Gold Climbs Above $4,400 as Cooler US CPI Cuts Fed Hike Bets
tsmc-stock

Wednesday, 12 August 2026

Duration

7 min

TSMC Stock Rises 1.7% as AI Infrastructure Rally Lifts Chip Sector

Latest news

gold

Thursday, 13 August 2026

Indices

Gold Price Today, August 14: XAU/USD Falls Below $4,350 as Profit-Taking Deepens

sandisk-stock

Thursday, 13 August 2026

Indices

SanDisk Stock Jumps Nearly 14% on Bullish 2030 Targets, Lam Research Gains Over 3%

kospi

Thursday, 13 August 2026

Indices

KOSPI Rises 2.7% Towards 7,000 as SK Hynix Gains 6% and Kioxia Jumps 7%

Thursday, 13 August 2026

Indices

EUR/USD Holds Near 1.1535 as Flat US PPI Supports Fed Pause Bets

gold rate in dubai

Thursday, 13 August 2026

Indices

Gold Rate in Dubai Today Falls as Global Bullion Prices Retreat

brent crude oil

Thursday, 13 August 2026

Indices

Oil Prices Tumble: Demand and Inventory Build

gold-trading

Wednesday, 12 August 2026

Indices

Gold Price Today, August 13: Gold Climbs Above $4,400 as Cooler US CPI Cuts Fed Hike Bets

tsmc-stock

Wednesday, 12 August 2026

Indices

TSMC Stock Rises 1.7% as AI Infrastructure Rally Lifts Chip Sector

WTI vs Brent Crude Oil

Wednesday, 12 August 2026

Indices

Oil Prices Fall Over 1% as OPEC and IEA Cut 2026 Demand Forecasts

bank-of-japan

Wednesday, 12 August 2026

Indices

USD/JPY forecast: Rate gap limits impact of US and Japanese intervention

See all news