TLDR
- BlackRock redesigned its money market fund (BSTBL) to manage reserves for stablecoin issuers under new federal regulations
- The fund invests in US Treasury securities and complies with the GENIUS Act signed by President Trump in July 2025
- BlackRock already manages reserves for Circle’s USDC and seeks to expand to more stablecoin companies
- The stablecoin market stands at $300 billion with forecasts reaching $2 trillion to $4 trillion by 2028-2030
- BSTBL features a 0.27% expense ratio and extended trading hours until 5:00 pm ET
BlackRock has launched a money market fund tailored for stablecoin issuers. The world’s largest asset manager restructured its existing fund to meet new US stablecoin regulations.
The BlackRock Select Treasury Based Liquidity Fund (BSTBL) went live this week. It provides a reserve management solution for companies issuing dollar-pegged stablecoins.
Jon Steel leads BlackRock’s cash management business as global head of product and platform. He told CNBC the firm wants to be a leading reserve manager for stablecoin issuers.
The fund complies with the GENIUS Act. This federal law created the first regulatory framework for stablecoins in the United States.
President Trump signed the legislation in July 2025. It requires stablecoin issuers to hold reserves in high-quality, liquid assets.
Fund Details and Structure
BSTBL invests exclusively in short-term US Treasury securities and overnight repurchase agreements. This investment strategy creates an ultra-safe vehicle for institutional clients.
BlackRock filed the fund changes with the SEC in August. The company’s board approved the restructuring before the Tuesday launch date.
The fund operates with extended hours until 5:00 pm Eastern Time. BlackRock also implemented later valuation times compared to the previous version.
Fee information appears in the fund’s prospectus. The management fee is 0.21%, with a 0.10% shareholder servicing fee.
Total expenses equal 0.27% after fee waivers. The waiver agreement extends through June 30, 2026.
Stablecoin Market Opportunities
BlackRock currently manages reserves for Circle, the company behind USDC. This partnership has grown as stablecoin usage expands globally.
The stablecoin market currently holds nearly $300 billion in supply. Citi analysts project growth to $4 trillion by 2030.
Other forecasts predict the onchain capital base could surpass $100 trillion within five years. This expansion reflects growing tokenization across multiple asset classes.
The US Treasury opened a public comment period last month. Regulators are finalizing rules for “permitted payment stablecoin issuers” under the GENIUS Act.
Anchorage Digital Bank partnered with Ethena Labs in July. They launched USDtb as the first US GENIUS-compliant stablecoin.
BlackRock’s Digital Asset Strategy
The BSTBL fund represents BlackRock’s largest stablecoin infrastructure initiative. The company aims to replicate its Circle partnership model with additional issuers.
BlackRock has built a comprehensive digital asset portfolio. The firm offers a Bitcoin ETF, an Ether product, and the BUIDL tokenized liquidity fund.
The asset manager filed SEC documents showing the fund previously invested in cash and US Treasury bills. The restructuring narrows the focus to Treasury securities and repurchase agreements only.
BlackRock’s $13.5 trillion in assets under management positions the firm as a major player. The company seeks to capture market share as regulated stablecoin demand increases.
The fund targets institutional investors requiring compliant reserve solutions. Extended trading hours and Treasury-only investments address specific stablecoin issuer needs under federal guidelines.
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