BNY Mellon’s Stablecoin Reserve Fund May Shift the Digital Asset Narrative for BK

• Earlier this month, BNY Mellon announced the launch of the BNY Dreyfus StablecoinReserves Fund (BSRXX), a money market fund created to help U.S. stablecoin issuers and institutional investors manage eligible reserves under the new GENIUS Act framework.
• The fund's initial investment from Anchorage Digital, a federally chartered crypto bank, underscores growing institutional interest in regulated digital asset solutions and highlights BNY Mellon's leadership in digital asset fund services.
• We'll explore how BNY Mellon's entry into stablecoin reserve management could reshape its position in the digital assets market.

Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.

Bank of New York Mellon Investment Narrative Recap

To be a BNY Mellon shareholder, you likely need to believe in the company’s long-term ability to harness global growth in institutional assets, expand digital asset services, and defend its core custody and asset servicing franchises. The recent launch of the BNY Dreyfus StablecoinReserves Fund may strengthen BNY’s digital asset credibility, but doesn’t materially shift the biggest immediate catalyst, growing fee-based revenues from institutional adoption, or reduce the most significant risk of persistent client outflows and industry fee pressure.

Of BNY’s recent announcements, the partnership with Grayscale Investments for fund administration on its Ethereum Mini Trust ETF stands out as especially relevant. It highlights a continued focus on digital asset infrastructure, reinforcing one of the key business catalysts, broadening BNY’s revenue base via next-generation products aligned with changing client needs.

By contrast, investors should also be aware that underlying client outflows and industry fee compression remain a structural risk for BNY’s long-term revenue growth if...

Read the full narrative on Bank of New York Mellon (it's free!)

Bank of New York Mellon's outlook anticipates $21.3 billion in revenue and $5.8 billion in earnings by 2028. This scenario requires 3.4% annual revenue growth and a $1.0 billion increase in earnings from the current level of $4.8 billion.

Uncover how Bank of New York Mellon's forecasts yield a $118.10 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community estimated BNY Mellon’s fair value between US$88.44 and US$119.40. While optimism about digital assets is driving current discussion, client outflows and fee trends may shape how the company performs over time, consider reviewing these varied viewpoints for a broader understanding.

Explore 4 other fair value estimates on Bank of New York Mellon - why the stock might be worth 21% less than the current price!

Build Your Own Bank of New York Mellon Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bank of New York Mellon research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Bank of New York Mellon research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bank of New York Mellon's overall financial health at a glance.

Curious About Other Options?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• Outshine the giants: these 25 early-stage AI stocks could fund your retirement.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• The latest GPUs need a type of rare earth metal called Terbium and there are only 35 companies in the world exploring or producing it. Find the list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com