BlackRock is making a major move into the digital dollar market. The $13.5 trillion asset manager has redesigned its flagship money market fund to comply with new U.S. stablecoin regulations, positioning itself as a key reserve manager for institutional stablecoin issuers.
Introducing the BlackRock Select Treasury Based Liquidity Fund (BSTBL)
The revamped fund is specifically designed to manage reserves for companies issuing U.S. dollar-pegged stablecoins. It offers a secure, ultra-liquid vehicle for parking customer funds while fully meeting regulatory requirements under the GENIUS Act, signed by President Donald Trump earlier this year.
Jon Steel, Global Head of Product and Platform for BlackRock’s cash management business, emphasized that the firm aims to be the preeminent reserve manager for stablecoin issuers. The BSTBL fund aligns perfectly with the new U.S. regulatory framework, which outlines how stablecoin issuers must hold and invest their reserves.
How the fund works
- Invests entirely in short-term U.S. Treasury securities and overnight repurchase agreements
- Offers extended trading hours until 5:00 p.m. ET and later valuation times
- Ultra-low cost: 0.21% management fee, 0.10% shareholder servicing fee, total expenses of 0.27% after waivers (waiver agreement through June 30, 2026)
BlackRock already manages reserves for Circle, issuer of $USDC, and the new BSTBL fund aims to replicate this model for additional stablecoin issuers, meeting growing demand for regulated reserve options.
BlackRock’s broader digital asset strategy
This fund represents the firm’s biggest push yet into the stablecoin market, complementing existing offerings like:
- #Bitcoin ETF
- Ethereum investment product
- BUIDL tokenized liquidity fund
Citi analysts project stablecoin issuance could surge from $280 billion today to $4 trillion by 2030, highlighting the massive growth potential. Meanwhile, the Treasury has opened a public comment period on GENIUS Act regulations, creating a strategic opportunity for institutional players to manage compliant reserves.
The bottom line:
BlackRock isn’t just dipping its toes in digital assets—it’s building infrastructure for the future of U.S. stablecoins. For institutions and stablecoin issuers, the BSTBL fund represents a highly secure, compliant, and scalable solution for reserve management in a rapidly expanding market.
