BlackRock Expands Into Stablecoin Market with Redesigned Fund

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8 hours ago
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BlackRock Expands Into Stablecoin Market
Key Takeaways
  • BlackRock launches its redesigned Select Treasury Based Liquidity Fund (BSTBL) to offer regulated, Treasury-backed reserves for stablecoin issuers.
  • The new BlackRock stablecoin fund aligns with the GENIUS Act, providing a compliant structure for issuers under the latest U.S. stablecoin regulations.
  • With stablecoin issuance projected to reach $4 trillion by 2030, BlackRock positions itself as a leading reserve manager for the expanding digital dollar market.

BlackRock’s latest move into digital assets marks a deeper step into the evolving world of stablecoins. The asset management giant has retooled one of its key liquidity products to support stablecoin issuers, reflecting how traditional finance is adapting to blockchain-based markets. This initiative, known as the BlackRock stablecoin fund, aligns with new U.S. regulations under the GENIUS Act; a framework signed into law earlier this year to govern stablecoin issuance.

The firm told CNBC that this redesigned fund aims to meet the growing demand for safe, compliant reserve vehicles as more companies issue dollar-pegged digital assets. For a company managing over $13.5 trillion, this shift signals a stronger connection between regulated finance and tokenized money markets.

 

A Redesigned Fund Built for Stablecoin Issuers

According to Cointelegraph, BlackRock has transformed its Liquid Federal Trust Fund into the newly titled BlackRock Select Treasury Based Liquidity Fund (BSTBL). The updated structure allows it to hold 100% of its assets in short-term U.S. Treasury securities and overnight repurchase agreements. This approach makes it an ultra-safe, highly liquid option designed for institutional clients, particularly those managing stablecoin reserves.

BlackRock’s global head of product and platform for cash management, Jon Steel, described the company’s goal clearly: “We want to be, and we believe we are, a preeminent reserve manager for stablecoin issuers”.

The BSTBL fund not only complies with the GENIUS Act’s new requirements but also incorporates operational adjustments, including extended trading hours until 5:00 p.m. Eastern Time and later valuation cut-offs. Its latest SEC filing outlines a total expense ratio of 0.27% after waivers, with a management fee of 0.21% and shareholder servicing fee of 0.10%. The current fee waiver runs through June 30, 2026.

 

Strengthening Ties Between TradFi and Crypto

BlackRock already has a footprint in this space through its partnership with Circle, the issuer of the USDC stablecoin. That collaboration allowed Circle to manage part of its reserves through BlackRock-managed funds, setting a precedent for institutional-grade custody and liquidity in the stablecoin ecosystem.

Now, with the BSTBL fund, BlackRock aims to offer a standardized reserve framework to a broader range of stablecoin issuers. By investing exclusively in U.S. Treasuries, the fund ensures transparency and regulatory alignment, two factors critical for the long-term credibility of stablecoins within financial markets.

The GENIUS Act, introduced under President Donald Trump’s administration, established the first clear federal guidelines for stablecoins in the United States. It emphasizes secure reserves, regular audits, and Treasury-backed assets. BlackRock’s updated fund fits neatly within that framework, giving issuers a way to comply while maintaining liquidity and yield potential.

Also read: Paxos Burned 300 trillion PYUSD Following Accidental Minting

 

A Growing Market Opportunity

The timing of this launch is significant. Citi analysts recently estimated that the total stablecoin supply, currently around $280 billion, could surge to $4 trillion by 2030. This rapid expansion reflects both institutional and retail adoption of digital dollars for payments, trading, and decentralized finance.

For BlackRock, tapping into this growth represents not just an investment opportunity but a role in shaping how traditional assets back digital currencies. By offering a regulated reserve vehicle, the company is positioning itself as a key service provider at the intersection of finance and blockchain.

However, not all details are public yet. CNBC noted that the official announcement is expected later this week, and BlackRock has not disclosed which specific issuers beyond Circle might participate. Still, the direction is clear, BlackRock is building infrastructure for stablecoins rather than simply observing the market.

Related read: Europe’s Largest Asset Manager Amundi Prepares to Launch Bitcoin ETNs

 

What This Means for the Future

BlackRock’s retooled stablecoin fund shows how traditional finance is converging with the digital asset sector under tighter regulation. The company’s structured, compliance-first approach contrasts with earlier years of unregulated stablecoin growth, potentially setting a new standard for transparency in reserve management.

As more issuers seek credible partners to safeguard customer funds, BlackRock’s role as a regulated, yield-bearing reserve manager could strengthen further. While broader adoption will depend on market conditions and regulatory evolution, this fund marks a key milestone in how stablecoins integrate into mainstream finance.

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