BlackRock’s Redesigned Money Market Fund May Attract USDC and Other Stablecoin Issuers

  • Ultra-safe Treasury-backed reserve vehicle for stablecoin issuers

  • BSTBL invests exclusively in short-term U.S. Treasury securities and overnight repurchase agreements for liquidity and capital preservation.

  • Citi projects stablecoin issuance could grow from about $280 billion today to $4 trillion by 2030; BlackRock manages $13.5 trillion in assets.

BlackRock stablecoin reserve fund: BSTBL offers Treasury-backed liquidity for stablecoin issuers with extended trading hours and regulated fee terms — read our analysis.

What is BlackRock’s redesigned money market fund for stablecoin reserves?

BlackRock stablecoin reserve fund refers to the BlackRock Select Treasury Based Liquidity Fund (BSTBL), a restructured money market vehicle investing only in short-term U.S. Treasuries and overnight repurchase agreements. The fund is positioned as a regulated, highly liquid reserve option for issuers of U.S. dollar-pegged stablecoins.

How does the BSTBL fund support stablecoin issuers?

The BSTBL fund provides a regulated, low-risk reserve solution by holding exclusively short-term U.S. Treasury securities and overnight repurchase agreements. According to a Securities and Exchange Commission filing, the fund’s redesign includes extended trading hours (until 5:00 pm ET) and later valuation times to better match stablecoin issuer operating windows. Fee disclosures in the summary prospectus list a 0.21% management fee, a 0.10% shareholder servicing fee and total expenses of 0.27% after current waivers, with a fee waiver agreement through June 30, 2026. Sources: BlackRock, SEC filing, CNBC.

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The new fund’s Summary Prospectus. Source: BlackRock

Why the redesign matters under the GENIUS Act

BlackRock explicitly framed the fund’s changes as aligned with the GENIUS Act, the U.S. federal law establishing a regulatory framework for stablecoins signed earlier this year by President Donald Trump. By offering a Treasury-based liquidity vehicle, BlackRock aims to meet the compliance and custody expectations set out in the new statute and to serve as a predictable reserve manager for regulated stablecoin programs. Source: CNBC; BlackRock prospectus.

Frequently Asked Questions

How will BlackRock’s BSTBL fund change reserve management for stablecoin issuers long-term?

BSTBL provides issuers an option to hold reserves in an ultra-liquid, Treasury-centric vehicle with extended trading hours and transparent fees. For issuers seeking regulator-friendly reserve arrangements, BSTBL standardizes a market alternative to private short-term holdings and bank deposits. (40–50 words)

Can stablecoin issuers use BlackRock’s BSTBL fund for daily customer redemptions?

Yes. BSTBL is structured for high liquidity and daily valuation, investing in overnight repos and short-term Treasuries to support redemption flows while maintaining principal preservation and regulatory alignment.

Key Takeaways

  • Regulated reserve option: BSTBL is designed to meet expectations in the GENIUS Act by focusing on Treasury-based liquidity and transparency.
  • Operational fit: Extended trading hours and later valuation times improve alignment with issuer operational needs and customer redemption windows.
  • Market implications: As stablecoin issuance potentially expands (Citi estimate: $280B to $4T by 2030), institutional reserve solutions like BSTBL may become a standard part of issuer risk-management frameworks.

Conclusion

The BlackRock Select Treasury Based Liquidity Fund (BSTBL) represents a deliberate shift to provide stablecoin issuers with a Treasury-backed, highly liquid reserve vehicle featuring clear fees and extended operating hours. The redesign aligns with regulatory developments under the GENIUS Act and leverages BlackRock’s scale—the firm manages approximately $13.5 trillion in assets—to offer an institutional alternative for reserve management. Sources: BlackRock prospectus, SEC filing, CNBC, Citi. Published: 2025-10-16. Updated: 2025-10-16. Author/Organization: COINOTAG.

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