BlackRock repositioned its Select Treasury Based Liquidity Fund as an approved reserve for U.S. stablecoin issuers under the GENIUS Act, shortening Treasury maturities and adding overnight repo to provide BlackRock stablecoin reserves that prioritize liquidity and regulatory compliance for stablecoin issuers.
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BlackRock retooled a money market fund to serve as a GENIUS Act–approved reserve asset.
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Changes include removing agency investments, shortening Treasury maturities and permitting overnight repurchase agreements for greater liquidity.
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BlackRock’s cash business has surpassed $1 trillion AUM; the move follows the firm’s prior $400 million funding role with USDC issuer Circle (2022).
BlackRock stablecoin reserves: BlackRock repurposes a money market fund as a GENIUS Act reserve asset—read how issuers gain a compliant, liquid reserve option today.
How does BlackRock’s money market fund become an approved stablecoin reserve asset?
BlackRock stablecoin reserves are created by adjusting the Select Treasury Based Liquidity Fund to meet GENIUS Act criteria: the fund shortens Treasury maturities, removes agency securities, and adds overnight repurchase agreements, producing a highly liquid, regulatory-aligned reserve option for U.S. stablecoin issuers.
What specific fund changes did BlackRock implement to serve stablecoin issuers?
BlackRock’s Select Treasury Based Liquidity Fund (BSTBL) will: remove agency investments; shorten the maturity profile of its U.S. Treasury holdings to enhance liquidity and reduce duration risk; and add overnight repurchase agreements as eligible assets to support immediate cash needs. Jon Steel, global head of product for BlackRock’s cash management business, noted increased demand from stablecoin issuers for compliant reserve management after GENIUS’s passage. These changes are intended to align the fund’s liquidity profile with the operational needs of stablecoin issuers while meeting GENIUS Act technical standards.
Frequently Asked Questions
How will this move affect stablecoin reserve practices long term?
BlackRock’s retooled fund provides a regulated, institutional-grade reserve option that could standardize reserve practices by offering short-term, liquid instruments compliant with GENIUS Act rules. The change may encourage other institutional reserve providers to adopt similar liquidity and maturity constraints. This answer is based on BlackRock’s stated fund adjustments and observable market demand.
Will stablecoin issuers be able to use the fund immediately under GENIUS?
Issuers can consider the fund once BlackRock completes internal changes and regulatory compliance checks required under GENIUS. Firms typically need operational integrations and internal risk approvals; BlackRock’s stated intent and fund adjustments position BSTBL as a near-term compliant option for issuers seeking liquid reserve assets.
Key Takeaways
- Regulatory alignment: BlackRock modified BSTBL to satisfy GENIUS Act reserve criteria, focusing on liquidity and short maturities.
- Market impact: As a large institutional manager, BlackRock’s move could influence reserve standards and increase institutional options for stablecoin issuers.
- Operational readiness: Issuers seeking compliant reserves gain a new option, but integration and due diligence remain necessary before deployment.
Additional context and expert notes
BlackRock’s cash management business recently surpassed $1 trillion in assets under management, underscoring the firm’s scale in liquidity solutions. In 2022, BlackRock also led a $400 million funding round for Circle, the issuer of USDC, and became a primary holder of Circle’s reserves—an existing connection that informs BlackRock’s activity in the space. BlackRock CEO Larry Fink has publicly advocated for accelerating the tokenization of traditional assets, reflecting the firm’s strategic interest in digital asset infrastructure.
Conclusion
BlackRock’s conversion of the Select Treasury Based Liquidity Fund into a GENIUS Act–compatible reserve option is a significant institutional step for stablecoin infrastructure. By shortening Treasury maturities, removing agency exposure, and enabling overnight repo, the fund aims to deliver liquid, compliant BlackRock stablecoin reserves that meet issuer needs while aligning with regulatory expectations. COINOTAG will monitor subsequent filings and operational rollouts for updates and implementation timelines—publishers and issuers should evaluate the fund’s prospectus and operational procedures before adoption.
Published: October 16, 2025. Updated: October 16, 2025. Author: COINOTAG. Sources referenced as plain text: BlackRock public statements; GENIUS Act public text; BlackRock AUM disclosures; historical reporting on BlackRock’s 2022 investment in Circle (USDC issuer).
