Bank of New York Mellon (BNY Mellon) and Goldman Sachs are stepping into the stablecoin industry, seeking regulatory approval to manage the massive pool of assets that back U.S. dollar–pegged tokens. Both firms have filed to launch specialized “stablecoin reserve funds,” a move made possible by the recently passed GENIUS Act, which sets strict guidelines for reserve holdings.
The proposed funds would invest solely in assets deemed safe and eligible under the new law, including U.S. Treasury bills, short-term government bonds, overnight repurchase agreements, and cash. The intent is to provide a highly secure and liquid foundation for stablecoin issuers, ensuring full backing while complying with consumer protection measures now required by law.
Goldman Sachs Asset Management has already put forward its application for a Stablecoin Reserves Fund, designed to preserve capital and provide immediate liquidity. The fund will only hold short-duration Treasuries and similar instruments, reflecting the legislation’s narrow definition of acceptable reserves.
BNY Mellon, meanwhile, is moving beyond reserve management by experimenting with the tokenization of money market funds. In partnership with Goldman Sachs, the bank plans to digitize shares of traditional money market funds using blockchain technology, offering real-time settlement, greater efficiency, and potential integration with stablecoin systems.
The GENIUS Act, signed earlier this year, has reshaped the landscape for stablecoins in the United States. It formally bans interest-bearing stablecoins, enforces a strict one-to-one backing rule, and prioritizes stablecoin holders in the event of issuer insolvency. By clarifying the framework, the legislation has opened the door for established banks and asset managers to take on critical roles in the sector.
Why It Matters
The entry of Goldman Sachs and BNY Mellon signals a new era in the convergence of traditional finance and digital assets. By managing stablecoin reserves, these institutions lend credibility to an industry that has long faced regulatory scrutiny. Their involvement also highlights the growing appeal of tokenization, where established financial products—such as money market funds—can be transformed into blockchain-based instruments with broader accessibility and efficiency.
The move also reflects rising competition: BlackRock already manages reserves for Circle’s USDC stablecoin, while Tether relies on Cantor Fitzgerald to oversee its Treasury holdings. With new regulations in place, the space is rapidly becoming a battleground for the world’s largest financial firms.
Stablecoins, once seen as a niche tool for crypto traders, are now at the center of a structural shift in global finance—bridging traditional markets with digital innovation. The participation of Wall Street’s biggest players may accelerate that transformation.
