BlackRock to launch GENIUS-compliant money market fund tailored for stablecoin issuers: report

BlackRock is rolling out a revamped money market fund designed to comply with the GENIUS Act as the world's largest asset manager positions to serve stablecoin issuers that must hold high-quality, liquid reserves under the new U.S. federal framework.

The fund — BlackRock Select Treasury Based Liquidity Fund (BSTBL) — has been retooled with a 5 p.m. ET trading deadline and a Treasury-heavy mandate, according to CNBC. It's part of a push to streamline reserve management for token issuers operating under federal guardrails.

BlackRock BSTBL overhaul may be poised to capitalize on the U.S. Treasury's rollout of the GENIUS Act, the nation's first federal stablecoin law signed by President Donald Trump in July.

The legislation directs regulators to develop rules for "permitted payment stablecoin issuers" (PPSIs), including standards for reserve assets such as short-term Treasury bills, anti-money laundering requirements, and mandatory reporting.

Last month, the Treasury opened a public comment period as it finalizes the regulations, paving the way for institutional players like BlackRock to manage compliant reserves amid projections that stablecoin issuance will reach $2 trillion by 2028. The Block's data dashboard shows stablecoin market supply of nearly $300 billion as of writing.

Moreover, BlackRock's push aligns with its broader digital assets suite — already spanning a spot bitcoin ETF, an ether ETP, and its BUIDL tokenized liquidity fund. Previous reporting also added that the firm is exploring tokenized funds tied to real-world assets as part of a broader foray into onchain finance.

The rebrand also coincides with the emergence of regulated, GENIUS-aligned stablecoins. In July, federally chartered Anchorage Digital Bank announced a partnership with Ethena Labs to package the DeFi startup's USDtb token as the first U.S. GENIUS-compliant stablecoin.

The bigger picture shows that tokenization is accelerating. BlackRock's step arrives in a year that has seen banks and asset managers pilot tokenized money-market exposures for collateral and 24/7 liquidity.

Many on Wall Street now view it as a durable modernization of market plumbing. TD Cowen analysts predict that the onchain capital base could exceed $100 trillion within five years as tokenization spreads across asset classes — a backdrop that supports why cash-management products aimed at stablecoin issuers are getting institutional attention.