tl;dr
BlackRock restructures a money market fund to target the stablecoin industry, aligning with the GENIUS Act and positioning itself as a leader in digital asset management.
**BlackRock Targets Stablecoin Market With New Fund, Aims to Lead in Digital Asset Ecosystem**
In a strategic move to capitalize on the growing stablecoin industry, BlackRock, the world’s largest asset manager, has restructured one of its money market funds to align with the requirements of the GENIUS Act. The initiative, spearheaded by John Steele, global head of products and platforms at BlackRock’s money management division, signals the firm’s ambition to become the go-to asset manager for stablecoin issuers.
The restructured fund, formerly known as the *BlackRock Liquid Federal Trust Fund*, has been renamed the *BlackRock Select Treasury-Based Liquidity Fund (BSTBL)*, according to filings with the U.S. Securities and Exchange Commission (SEC). The transformation marks a shift in the fund’s investment strategy, moving from a portfolio focused on U.S. Treasury bonds and cash to one that prioritizes short-term bonds and overnight repurchase (repo) transactions. These changes took effect on October 14, 2025, positioning BSTBL as a more agile and compliant vehicle for stablecoin operators.
**Aiming to Attract Stablecoin Issuers**
Steele emphasized that BlackRock’s restructuring is designed to attract stablecoin issuers, offering them the same advantages already available to partners like Circle, the creator of the USDC stablecoin. BlackRock currently manages most of Circle’s reserves through the *Circle Reserve Fund (USDXX)*, a partnership that underscores the firm’s existing expertise in the space.
“We want to be — and we believe we are — the preeminent asset manager for stablecoin issuers,” Steele told CNBC. The fund’s compliance with the GENIUS Stablecoin Act, signed into law by former President Donald Trump in mid-July 2025, further enhances its appeal. The legislation, which imposes stricter regulatory standards on stablecoins, requires issuers to maintain reserves backed by high-quality assets, a framework that BSTBL is now structured to support.
**Extended Trading Hours and Compliance Benefits**
A key feature of BSTBL is its extended trading hours, which now operate from 2:30 PM to 5:00 PM ET. This adjustment addresses the operational needs of stablecoin issuers, who often require access to liquidity during non-traditional market hours. Steele highlighted that the fund’s compliance with the GENIUS Act not only provides stability for clients but also opens new distribution channels for stablecoin projects.
“This will not only help our clients if they decide to issue a stablecoin, but it will also create new distribution opportunities,” Steele said.
**Competitive Landscape and Industry Trends**
BlackRock’s move reflects a broader trend among major financial institutions to adapt their offerings to the evolving digital asset landscape. Fidelity has launched a treasury-based liquidity fund tailored for crypto-backed assets, while State Street has extended trading hours on its money market products to better support digital asset operations. These developments indicate a growing recognition of the stablecoin market’s significance and the need for institutional-grade infrastructure.
As the stablecoin sector continues to expand, BlackRock’s strategic pivot underscores its commitment to remaining at the forefront of financial innovation. By aligning with regulatory frameworks and enhancing operational flexibility, the firm is positioning itself to capture a significant share of the market, which is projected to surpass $1.5 trillion in value by 2026.
For stablecoin issuers, the availability of a compliant, liquid, and flexible fund like BSTBL could serve as a critical tool in navigating the complexities of the digital currency ecosystem. As Steele noted, BlackRock’s vision is not just to adapt to the future of finance but to shape it.
In an industry marked by rapid change and regulatory scrutiny, BlackRock’s latest initiative highlights the intersection of traditional finance and blockchain technology—a partnership that could redefine how value is stored, transferred, and managed in the digital age.