BlackRock adapts fund for stablecoin issuers under GENIUS Act
BlackRock, the world’s largest asset manager with $13.5 trillion under management, has redesigned one of its flagship money market funds to comply with the GENIUS Act, the new U.S. regulatory framework for stablecoins signed by President Donald Trump earlier this year.
The revamped fund, now called the BlackRock Select Treasury Based Liquidity Fund (BSTBL), will cater to stablecoin issuers looking for a secure, yield-bearing place to hold customer reserves, reports Cointelegraph.
The fund aligns with the GENIUS Act’s requirements for transparency, liquidity, and capital safety — key principles for managing reserves behind U.S. dollar-pegged digital assets.
“We want to be — and we believe we are — a preeminent reserve manager for stablecoin issuers,” said Jon Steel, BlackRock’s global head of product and platform for cash management.
Restructured portfolio focuses on short-term Treasuries
BlackRock’s filing with the Securities and Exchange Commission (SEC) revealed that the BSTBL fund was formerly known as the BlackRock Liquid Federal Trust Fund, which primarily invested in cash and U.S. Treasury securities. The company’s board approved structural changes effective October 1, converting the fund into a fully Treasury-based vehicle investing exclusively in short-term U.S. Treasuries and overnight repurchase agreements.
The restructured fund aims to provide ultra-safe, highly liquid investment options for institutional clients, including stablecoin issuers. It also introduces longer trading hours (until 5 p.m. Eastern) and extended valuation windows to accommodate global settlements.
BlackRock disclosed a 0.27% total expense ratio after fee waivers, with a management fee of 0.21% and a shareholder servicing fee of 0.10%. The company has committed to maintaining fee waivers through June 30, 2026, to attract institutional clients amid rising competition in the stablecoin reserve market.
Expanding stablecoin partnerships and market potential
BlackRock already manages reserve assets for Circle’s USDC, one of the largest regulated stablecoins in the world. The new BSTBL fund will extend that model to additional issuers seeking compliant, transparent reserve management under the GENIUS Act’s federal standards.
According to Citi analysts, global stablecoin issuance — currently at $280 billion — could reach $4 trillion by 2030, driven by institutional adoption and regulatory clarity. As stablecoins become more integrated into payment systems, BlackRock’s entry into the sector positions it as a key intermediary between traditional finance and blockchain-based money markets.
By redesigning its liquidity fund for the digital economy, BlackRock is signaling that stablecoins are moving from the periphery of crypto into the core of global financial infrastructure — and the company aims to be the trusted custodian for this new class of digital dollar reserves.
Recently we wrote that Nomura Group’s Laser Digital has received in-principle approval from Dubai’s Virtual Asset Regulatory Authority (VARA) to tokenize its Laser Carry Fund (LCF) under the pilot ARVA Framework.
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