BlackRock calls for greater flexibility in stablecoin reserve requirements
BlackRock has submitted a detailed 17-page comment letter to the Office of the Comptroller of the Currency (OCC), urging regulators to remove a proposed 20% cap on tokenized assets that can be held in stablecoin reserves. The world’s largest asset manager argues that the restriction is unnecessary and could slow innovation in the sector.
Highlights
- BlackRock submitted a letter to the OCC requesting removal of the 20% tokenized reserve limit.
- The firm argues risk should depend on asset quality, not tokenization technology.
- Its BUIDL fund, with $2.6 billion in assets, is a key example of tokenized Treasuries used in stablecoin reserves.
- The tokenized real-world assets market currently stands at $27.65 billion and could reach $16 trillion by 2030.
BlackRock’s position on new rules
The filing came on the final day of a 60-day public comment period following the OCC’s release of draft rules on March 2, 2026. The proposed regulations are part of the GENIUS Act, signed into law by President Trump last year to establish a federal framework for stablecoins.
BlackRock contends that the risk of reserve assets should be assessed based on credit quality, liquidity, and duration—not whether they are held in tokenized or traditional form. The firm warns that a 20% limit would unnecessarily constrain the use of high-quality tokenized instruments, even when they meet strict safety standards.
Focus on BUIDL fund and broader proposals
Central to BlackRock’s concerns is its tokenized Treasury fund BUIDL, which manages approximately $2.6 billion in assets and serves as collateral for several stablecoins, including USDtb.
The company says the cap would hinder the growth of such products despite their strong risk profile.In addition to eliminating the 20% restriction, BlackRock asked regulators to allow Treasury-focused ETFs to qualify as reserve assets and to permit two-year floating-rate U.S. Treasuries.
Regulation will shape future of tokenization
BlackRock’s intervention highlights the growing role of traditional finance giants in shaping rules for stablecoins and blockchain-based assets. The OCC’s final decision, expected by January 2027, will send a major signal to the industry.
Approving greater flexibility could accelerate the integration of tokenization into mainstream finance. Conversely, strict limits risk slowing one of the most promising segments of the digital asset market at a critical early stage.
We have previously highlighted that BlackRock adapts funds for stablecoin issuers under the GENIUS Act.
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