BlackRock has strategically repositioned its Select Treasury Based Liquidity Fund (BSTBL) to serve the growing stablecoin market. This transformation marks a significant step in bridging traditional finance with digital asset innovation. The fund now aligns with the requirements of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), creating new opportunities for stablecoin issuers seeking compliant reserve assets.
NEW: 🇺🇸 @BlackRock will unveil a Genius Act-compliant money market fund today.
— crypto.news (@cryptodotnews) October 16, 2025
The new fund is designed to simplify reserve custody for stablecoin issuers. pic.twitter.com/tfBfbBECOE
Enhanced Liquidity and Accessibility
The revamped fund introduces several key operational improvements to better serve the digital asset ecosystem. BlackRock has expanded the fund’s trading window to 5:00 PM ET, offering stablecoin issuers greater flexibility in managing their reserves. Additionally, the fund now incorporates overnight repurchase agreements and focuses on shorter-term U.S. Treasury instruments, while removing agency securities from its portfolio. These changes strengthen the fund’s liquidity profile and ensure quick response to redemption demands, which remains crucial for stablecoin stability.
Strategic Position in Digital Finance
This initiative builds upon BlackRock’s growing presence in the digital asset space. The firm currently manages the largest tokenized private fund focused on short-term U.S. Treasury strategies. BlackRock’s cash management business has reached a remarkable milestone of $1 trillion in assets under management, demonstrating its leadership in liquidity management. The company continues to expand its digital asset solutions, reinforcing its position as a bridge between traditional and digital finance.
Market Impact and Future Outlook
The stablecoin market continues to expand, with major players like Tether’s USDT and Circle’s USDC commanding significant market share. BlackRock’s entry into this space as a reserve asset manager signals growing institutional acceptance of digital assets. This development comes as regulatory frameworks evolve, with Federal Reserve officials emphasizing the need for comprehensive stablecoin regulation. By positioning the BSTBL fund as a GENIUS Act-compliant reserve option, BlackRock provides a regulated and secure foundation for future stablecoin innovation.
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