BlackRock (NYSE:BLK) is introducing a redesigned money market fund, the BlackRock Select Treasury Based Liquidity Fund (BSTBL), aligning with the newly enacted GENIUS Act, the first comprehensive U.S. federal framework for stablecoins.
What Happened: The updated BSTBL is tailored for stablecoin issuers required to maintain high-quality, liquid reserves under federal regulation.
According to CNBC, the fund now carries a Treasury-heavy portfolio, optimized for token issuers operating under U.S. oversight.
This initiative complements BlackRock's broader digital asset strategy, which already includes a spot Bitcoin ETF, an Ethereum ETF, and the BUIDL tokenized liquidity fund.
The asset manager is also exploring tokenized real-world asset funds, signaling its growing commitment to on-chain finance.
The move follows the rollout of GENIUS-compliant stablecoins, including Anchorage Digital Bank's partnership with Ethena Labs to launch USDtb, the first federally approved stablecoin under the GENIUS framework.
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Why It Matters: Signed into law by president Donald Trump in July, the GENIUS Act establishes a national standard for "permitted payment stablecoin issuers" (PPSIs), defining strict rules for reserve composition, AML/KYC compliance, and ongoing transparency and reporting.
Industry forecasts predict stablecoin issuance could surpass $2 trillion by 2028, up from about $300 billion today.
Meanwhile, financial institutions are increasingly piloting tokenized money market funds to improve collateral efficiency and enable 24/7 liquidity.
Analysts at TD Cowen estimate the on-chain capital base could exceed $100 trillion within five years, a shift that positions funds like BlackRock's BSTBL as a cornerstone for the next generation of institutional cash management.
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