BlackRock Updates Fund to Support GENIUS-Compliant Stablecoins

BlackRock has recently updated one of its money market funds to help stablecoin issuers follow new U.S. federal rules under the GENIUS Act. This move aims to serve companies that need to hold safe and liquid reserves while operating under government regulations. 

The asset manager is now at the forefront of a growing market as digital currencies and tokenized assets gain broader institutional attention.

BlackRock’s BSTBL Fund Designed for Safety and Compliance

The new fund, called BlackRock Select Treasury-Based Liquidity Fund (BSTBL), has been restructured with a focus on safety and regulatory compliance. It is now 5 p.m. ET trading cutoff and focuses mainly on U.S. Treasury securities. 

These changes make it easier for stablecoin issuers to manage their reserves in a secure and compliant way. This makes it a natural fit for stablecoin issuers required to hold high-quality, liquid reserves while following the GENIUS Act rules. 

The GENIUS Act: A Federal Framework for Stablecoins

Stablecoins are digital coins that are meant to keep a stable value, often tied to the U.S. dollar. BlackRock’s restructuring of BSTBL comes after the U.S. government signed the GENIUS Act into law in July. 

This is officially the country’s first federal stablecoin law, and it sets standards for “permitted payment stablecoin issuers” (PPSIs). This includes rules for holding reserve assets, anti-money laundering (AMI) regulations, and mandatory reporting requirements. 

Notably, the U.S. Treasury Department recently asked the public for feedback to finalize these rules. Experts say stablecoin issuance in the U.S. could grow from about $300 billion today to $2 trillion by 2028. This creates a big opportunity for funds like BSTBL that support regulated stablecoins.

BlackRock’s Broader Digital Assets Strategy

This fund update is part of BlackRock’s growing work in digital finance. The company already offers a spot Bitcoin exchange-traded fund (ETF), an Ethereum ETP, and its BUIDL tokenized liquidity fund. Reports say BlackRock is also looking into tokenized funds backed by real-world assets. This shows the company’s commitment to connecting traditional finance with digital assets. 

The update also comes as GENIUS-aligned stablecoins start to emerge. In July, Anchorage Digital Bank partnered with Ethena Labs to issue USDtb, the first federally compliant stablecoin in the U.S. 

BlackRock’s move is part of a bigger trend of using tokens in financial markets. Banks and asset managers are looking into tokenized money market products that offer fast, flexible, and round-the-clock access to funds. Many experts believe this could improve traditional market systems. 

This comes as experts predict that tokenized assets on blockchain could grow to over $400 trillion in the coming years. Against this backdrop, funds like BlackRock’s BSTBL, designed for stablecoin companies, are likely to attract strong interest from large investors.