BlackRock Makes Major Play for $300 Billion Stablecoin Market with New Fund

TLDR

• BlackRock has redesigned its money market fund, now called BlackRock Select Treasury Based Liquidity Fund (BSTBL), to serve stablecoin issuers under new US regulations
• The fund complies with the GENIUS Act, the first federal stablecoin law signed by President Trump in July 2025
• BSTBL invests entirely in short-term US Treasury securities and overnight repurchase agreements, with trading hours until 5:00 pm ET
• BlackRock already manages reserves for Circle’s USDC stablecoin and aims to attract more issuers as the market grows
• The stablecoin market currently sits at nearly $300 billion, with projections reaching $2 trillion to $4 trillion by 2028-2030

BlackRock has restructured one of its money market funds to serve the growing stablecoin industry. The $13.5 trillion asset manager renamed its BlackRock Liquid Federal Trust Fund to the BlackRock Select Treasury Based Liquidity Fund (BSTBL).

The changes took effect this Tuesday. The fund now focuses on providing reserve management services for companies that issue US dollar-pegged stablecoins.

The fund redesign aligns with the GENIUS Act. President Donald Trump signed this legislation in July 2025, creating the first federal regulatory framework for stablecoins in the United States.

The law requires stablecoin issuers to hold high-quality, liquid reserves. It also sets standards for anti-money laundering requirements and mandatory reporting.

Fund Structure and Fees

BSTBL invests entirely in short-term US Treasury securities and overnight repurchase agreements. This makes it an ultra-safe, highly liquid option for institutional investors.

BlackRock filed the changes with the Securities and Exchange Commission in August. The company’s board approved the restructuring before the Tuesday launch.

The fund features extended trading hours until 5:00 pm Eastern Time. It also includes later valuation times compared to the previous version.

BlackRock disclosed the fund’s fee structure in its prospectus. The management fee stands at 0.21 percent, with a 0.10 percent shareholder servicing fee.

Total expenses amount to 0.27 percent after waivers. A fee waiver agreement runs through June 30, 2026.

Stablecoin Market Growth

BlackRock already manages reserves for Circle, which issues the USDC stablecoin. This partnership has expanded as stablecoin adoption increases across the industry.

The stablecoin market currently has a supply near $300 billion. Citi analysts project issuance could reach $4 trillion by 2030.

TD Cowen analysts predict the onchain capital base could exceed $100 trillion within five years. This growth comes as tokenization spreads across different asset classes.

The BSTBL fund represents BlackRock’s largest move into stablecoin reserve management. The company aims to bring its Circle model to additional issuers seeking regulated reserve options.

Last month, the US Treasury opened a public comment period for finalizing GENIUS Act regulations. These rules will establish requirements for “permitted payment stablecoin issuers.”

In July, Anchorage Digital Bank partnered with Ethena Labs to create USDtb. The companies called it the first US GENIUS-compliant stablecoin.

BlackRock’s move fits into its broader digital asset strategy. The firm offers a Bitcoin ETF, an Ether product, and the BUIDL tokenized liquidity fund launched earlier in 2025.

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