BlackRock Targets Stablecoin Issuers With New Treasury Fund

- BlackRock aligns its Treasury fund with GENIUS Act rules to serve U.S. stablecoin issuers.
- Stablecoin reserves are projected to surge as BlackRock positions for regulated market growth.
- BlackRock’s cash unit surpasses $1T in assets, expanding its digital asset strategy.
BlackRock has announced a major update to its Select Treasury-Based Liquidity Fund (BSTBL) as it expands its involvement in digital finance and stablecoin reserve management. This move follows the asset manager’s cash management business surpassing $1 trillion in assets, which highlights its growing influence in liquidity and digital solutions.
Fund Strategy Adjusted to Meet Stablecoin Reserve Standards
BlackRock restructured the BSTBL to comply with the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a federal framework regulating payment stablecoins. The updated fund now invests primarily in short-term U.S. Treasury securities and overnight repurchase agreements, removing agency investments to improve liquidity and stability.
The company also extended the fund’s trading deadline from 2:30 p.m. to 5:00 p.m. Eastern Time, offering greater accessibility for institutional investors. According to filings with the U.S. Securities and Exchange Commission, these adjustments create a Treasury-only structure with enhanced liquidity and compliance, making it suitable for stablecoin issuers seeking regulated reserve management options.
Jon Steel, Global Head of Product and Platform for BlackRock’s Cash Management division, stated that demand from stablecoin issuers has risen sharply. “We are seeing strong interest in compliant reserve management solutions,” Steel said. “This initiative positions BlackRock as a preferred reserve asset manager within the digital payments ecosystem.”
GENIUS Act Framework and Stablecoin Market Expansion
The GENIUS Act, signed into law in July, established the first comprehensive U.S. regulatory framework for stablecoins. It mandates that stablecoin issuers keep fully backed reserves in liquid assets like Treasury bills and overnight repurchase agreements. Additionally, the law establishes new anti-money laundering and reporting standards for issuers regulated at the federal level.
The U.S. Treasury Department began its public comment period on the Act’s implementation last month, signaling that regulated stablecoin products may enter the market in early 2026. Analysts anticipate that the stablecoin market will grow rapidly under the new structure. Citi analysts recently projected that global stablecoin issuance could climb from about $300 billion to $4 trillion by 2030, creating opportunities for traditional financial institutions to serve as reserve managers.
The revised BSTBL fund by BlackRock suits this evolving market by offering a compliant vehicle with yield for issuers of stablecoins. The move also positions the company to capitalize on the growth of tokenized financial products under federal regulations.
Related: BlackRock CEO Calls Digital Assets A Modern Gold Alternative
Expansion of BlackRock’s Digital Asset Strategy
The launch follows BlackRock’s expansion of its digital assets strategy which now features the BUIDL tokenized liquidity fund, a spot Bitcoin ETF, and an Ether exchange-traded product. The company has also invested in Circle, the issuer of the USDC stablecoin, in a 2022 financing round that made BlackRock one of the central reserve managers of digital assets.
Chief Executive Officer Larry Fink recently emphasized the firm’s commitment to blockchain integration, noting that tokenization will modernize financial infrastructure. “We believe tokenizing assets will streamline financial operations and improve transparency,” Fink said earlier this week.