BlackRock Unveils GENIUS-Compliant Money Market Fund for Stablecoin Reserve Management

• BlackRock restructures BSTBL fund to manage compliant stablecoin reserves under GENIUS Act.
• BlackRock’s Cash Management division exceeds $1 trillion in assets, achieving a major milestone.
• BlackRock expands digital asset strategy with tokenized funds and regulated stablecoin solutions.

BlackRock has announced a strategic update to its BlackRock Select Treasury Based Liquidity Fund (BSTBL) to align with the recently enacted Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. 

According to the announcement, the revised BlackRock Select Treasury Based Liquidity Fund (BSTBL) will focus on short-term US Treasury securities and overnight repurchase agreements, with the removal of agency investments to increase liquidity. 

BlackRock has also extended the fund’s trading deadline from 2:30 p.m. ET to 5:00 p.m. ET, which provides better access for institutional clients. 

BlackRock aligns BSTBL fund with U.S. stablecoin regulations

According to Jon Steel, Global Head of Product and Platform at the firm’s Cash Management business, the BSTBL money market fund “positions BlackRock as one of the reserve asset managers of choice for the digital payments ecosystem.” Steel said the firm has witnessed a growing demand from stablecoin issuers and clients looking for “innovative, compliant reserve management solutions.”

The Asset Manager anticipates that the revised fund will attract more stablecoin issuers that seek secure yield-generating reserve solutions amid stringent federal oversight.

The adjustments also follow a record milestone for BlackRock’s Cash Management division, which has crossed $1 trillion in assets under management, according to its latest earnings report. The firm remains one of the largest providers of Rule 2a-7 money market funds globally.

Also Read: BlackRock’s Bitcoin ETF Sees Remarkable Growth Fueled by Strong Institutional Demand

Expanding Role in Tokenization and Digital Markets

The restructured BSTBL fund expands BlackRock’s strategy to incorporate digital finance into traditional markets. The firm already manages the world’s largest tokenized Treasury fund, called BUIDL, as well as the top bitcoin and ether exchange-traded products. The firm also partners with Circle, the issuer of the USDC stablecoin, to oversee parts of its reserves.

Earlier this week, CEO Larry Fink said, “It is our belief that we need to be moving rapidly. We need to be tokenizing all assets, especially assets that have multiple levels of intermediaries.”

Notably, in the third quarter of 2025, BlackRock experienced net client inflows of $205 billion and its total assets under management reached an all-time high of $13.5 trillion. This growth was primarily attributable to its ETF and alternative asset divisions.

GENIUS Act Spurs Institutional Interest in Stablecoin Reserves

The GENIUS Act, signed into law in July by President Donald Trump, established federal guidelines for stablecoin issuers for the first time. The stablecoin law requires issuers to hold reserves in high-quality, liquid assets, such as U.S. Treasury securities and comply with anti-money laundering and reporting requirements. It aims to increase transparency and stability of the financial system in digital payments.

The increasing demand for regulated reserves has also prompted financial institutions to create new products compliant with federal rules. In July, federally chartered Anchorage Digital Bank collaborated with Ethena Labs to launch USDtb, the first officially GENIUS-compliant stablecoin in the United States.

Experts estimate that stablecoin issuance may grow from approximately $300 billion to more than $2 trillion by 2028, driven by institutional adoption and regulatory initiatives like the GENIUS Act. 

Also Read: S&P Global and Chainlink Collaborate to Publish Stablecoin Risk Scores Onchain