BlackRock is taking a major step into the booming stablecoin market with a redesigned money market fund built to comply with new US regulations under the GENIUS Act. The fund aims to provide a secure, transparent reserve solution for stablecoin issuers as demand for regulated digital dollar assets continues to surge.
BlackRock Aligns with New US Stablecoin Rules
The $13.5 trillion asset manager has restructured one of its flagship money market funds to meet the first US regulatory framework for stablecoins. The new fund, named BlackRock Select Treasury Based Liquidity Fund (BSTBL), will manage reserves for companies issuing US dollar–pegged stablecoins.
“We want to be — and we believe we are — a preeminent reserve manager for stablecoin issuers,” said Jon Steel, BlackRock’s global head of product and platform for cash management, in a statement to CNBC.
The GENIUS Act, signed into law earlier this year by President Donald Trump, sets strict guidelines for how stablecoin issuers must hold and invest their reserves. BlackRock’s redesigned fund was built to align with these rules, ensuring full compliance while offering stablecoin firms a safe and highly liquid vehicle for storing customer funds.
Fund Restructured for Institutional Liquidity and Safety
According to an SEC filing from August, BlackRock has renamed and restructured its BlackRock Liquid Federal Trust Fund, which previously invested all assets in cash, US Treasury bills, and notes. The revamped fund will now invest exclusively in short-term US Treasury securities and overnight repurchase agreements, maximizing both liquidity and safety for institutional clients.
The company’s board approved the changes, which took effect this week. The BSTBL fund also features extended trading hours until 5:00 p.m. Eastern Time and later valuation times to accommodate a broader range of institutional investors.
In a summary prospectus, BlackRock detailed the fund’s operating structure, including a 0.21% management fee, 0.10% shareholder servicing fee, and total expenses of 0.27% after waivers, with a fee waiver agreement lasting through June 30, 2026.
Expanding BlackRock’s Digital Asset Footprint
The launch of BSTBL marks BlackRock’s most significant move yet into the stablecoin reserve management space, positioning the firm as a key player in the infrastructure supporting the digital asset economy.
This development comes amid BlackRock’s broader expansion in blockchain and tokenized finance, which includes the iShares Bitcoin ETF (BTC: $110,748), an Ether product (ETH: $4,024), and the BUIDL tokenized liquidity fund launched earlier this year.
Targeting Stablecoin Issuers Like Circle
BlackRock already manages reserves for Circle, the issuer of the USDC stablecoin ($1), through a long-standing partnership that has scaled alongside the rapid growth of the stablecoin market. The new BSTBL fund aims to replicate this model for additional issuers, offering them a regulated, yield-bearing, and fully transparent reserve vehicle.
Stablecoin Market Poised for Explosive Growth
With the stablecoin market currently valued around $280 billion, analysts expect significant expansion in the coming years. Citi Research projects that issuance could soar to $4 trillion by 2030, fueled by increasing institutional adoption, cross-border use cases, and integration into traditional financial systems.
By establishing itself early as a trusted reserve manager, BlackRock is positioning to capture a major share of this growing sector—solidifying its role at the intersection of traditional finance and blockchain innovation.
