TLDR
- BlackRock redesigned its money market fund to comply with the GENIUS Act, the new US regulatory framework for stablecoins signed by President Trump
- The renamed BlackRock Select Treasury Based Liquidity Fund (BSTBL) invests entirely in short-term US Treasury securities and overnight repurchase agreements
- The fund launched on Tuesday with a 0.27% total expense ratio after fee waivers and extended trading hours until 5:00 pm Eastern Time
- BlackRock already manages reserves for Circle’s USDC stablecoin and aims to attract more stablecoin issuers with this new compliant product
- The stablecoin market is currently valued at over $313 billion, with analysts projecting growth to $4 trillion by 2030
BlackRock has redesigned one of its money market funds to comply with new US stablecoin regulations. The $13.5 trillion asset manager launched the product on Tuesday.
The new fund is called the BlackRock Select Treasury Based Liquidity Fund (BSTBL). It will serve as a reserve management vehicle for companies that issue US dollar-pegged stablecoins.
BlackRock restructured its existing BlackRock Liquid Federal Trust Fund to create the new product. The company filed the changes with the Securities and Exchange Commission in August.
The fund now invests entirely in short-term US Treasury securities and overnight repurchase agreements. This makes it a highly liquid and secure option for institutional investors.
Jon Steel leads BlackRock’s cash management business globally. He said the company wants to be a leading reserve manager for stablecoin issuers.
The fund complies with the GENIUS Act, which President Donald Trump signed into law in July 2025. This legislation created the first US regulatory framework for stablecoins.
The GENIUS Act requires stablecoins to maintain 1:1 backing with cash or short-term Treasuries. Issuers must also complete monthly third-party audits.
Fund Structure and Fees
The BSTBL fund operates with extended trading hours until 5:00 pm Eastern Time. BlackRock also adjusted valuation times to accommodate institutional clients.
The fund charges a 0.21% management fee and a 0.10% shareholder servicing fee. Total expenses come to 0.27% after fee waivers.
BlackRock has agreed to maintain the fee waiver structure through June 30, 2026. The company disclosed these details in its summary prospectus.
The fund includes tokenization features that support real-time settlements. This provides greater liquidity for stablecoin issuers.
BlackRock already manages reserves for Circle, the company behind the USDC stablecoin. The partnership has grown as stablecoin adoption increases.
Market Size and Growth
The stablecoin market is currently valued at over $313 billion. Stablecoin issuers hold more than $120 billion in US Treasury securities.
Citi analysts recently projected the stablecoin market could grow to $4 trillion by 2030. This represents growth from $280 billion today.
The BSTBL fund launch is part of BlackRock’s broader digital asset strategy. The company already offers a Bitcoin ETF and an Ether product.
BlackRock also launched the BUIDL tokenized liquidity fund earlier this year. These products reflect the firm’s growing presence in cryptocurrency markets.
The new fund aims to attract more stablecoin issuers seeking regulated reserve options. BlackRock wants to provide institutional-grade solutions as the market expands.
Stablecoin issuers face increasing pressure to demonstrate transparent custody practices. The GENIUS Act compliance requirements address these concerns.
BlackRock’s entry positions the company to capture a larger share of the stablecoin reserve management market. The fund offers a compliant solution as regulatory standards become more defined.
