BlackRock, the world’s largest asset manager with over $13.5 trillion in assets, has repositioned one of its core money market funds to meet the growing demand for secure, regulation-compliant stablecoin reserve solutions.
The newly named BlackRock Select Treasury Based Liquidity Fund (BSTBL) is tailored to help companies manage reserves for US dollar-pegged stablecoins. This strategic move comes in response to the new GENIUS Act, the United States’ first comprehensive regulatory framework for stablecoins.
BlackRock Targets Stablecoin Market with Regulatory-Ready Fund
The BSTBL fund, formerly known as the BlackRock Liquid Federal Trust Fund, now focuses entirely on short-term U.S. Treasury securities and overnight repurchase agreements. These low-risk, highly liquid instruments are ideal for institutions that need reliable, transparent backing for digital dollar tokens.
According to Jon Steel, Head of BlackRock’s Cash Management division, the goal is to make BlackRock a trusted reserve manager for stablecoin issuers. By offering a compliant, ultra-liquid vehicle, BlackRock is stepping directly into the rapidly evolving digital finance space.
This fund upgrade also reflects a broader trend: as stablecoin adoption expands—driven by demand for faster, cheaper payments—major financial institutions are moving to offer the infrastructure needed to support it.
Extended Trading and Transparent Fees for Institutions
To meet the operational needs of crypto-native and traditional financial institutions, BlackRock has added several enhancements to the BSTBL fund:
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Extended trading hours to accommodate 24/7 markets
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A clear and detailed fee structure for improved cost transparency
These features make the fund more accessible and predictable for institutions managing large volumes of digital assets.
With stablecoin issuance expected to surge by 2030, BlackRock’s early and strategic positioning could make BSTBL a go-to reserve vehicle for issuers looking to comply with U.S. regulations while preserving liquidity and stability.
