• BlackRock revamps its money market fund to serve stablecoin issuers.

• The fund is GENIUS Act-compliant, more liquid, and has extended trading hours.

  

• BlackRock already manages most of Circle’s reserves and aims to expand to other issuers.

  

BlackRock, the asset management giant, is stepping up its game in the crypto space. With stablecoins gaining traction and tokenization on rise, the firm is positioning itself to offer new solutions and expand its role in the crypto ecosystem.

BlackRock Revamps Fund to Support Stablecoin Issuers

To support stablecoin issuers, BlackRock has revamped one of its money market funds, now called the BlackRock Select Treasury Based Liquidity Fund (BSTBL), CNBC reported. The fund is designed to be safer, more liquid, and compliant with the new GENIUS Act, signed in July 2025, that provides a regulatory framework for stablecoins.

Stablecoin issuers invest customer funds in safe, liquid assets to earn returns and ensure easy redemptions. To support this, BlackRock has revamped its fund, tailored to meet the growing needs of stablecoin issuers.

The fund also extends trading hours to better serve clients across time zones.

Expanding Reserve Management Services Beyond Circle

“We want to be, and we believe we are, a preeminent reserve manager”for stablecoin issuers, Jon Steel, the global head of product and platform for BlackRock’s cash management business, told CNBC.

Notably, BlackRock has already been a key partner for Circle, the second-largest stablecoin issuer, managing the majority of its reserve fund. It is now looking to offer the same kind of reserve management services to other issuers.

The new fund not only supports stablecoin issuers but is also open to institutional investors like pensions and endowments. Through this move, BlackRock aims to expand its presence in a growing segment of the digital asset space.

This move builds on BlackRock’s growing presence in crypto. It already offers a Bitcoin ETF and an Ethereum ETP and manages BUIDL, the world’s largest tokenized money market fund. 

Stablecoins Gain Momentum

Stablecoins are a fast-growing market. The global stablecoin market cap has surpassed $316 billion, and analysts expect total issuance to rise to $4 trillion by 2030.

To ensure trust and stability as the market grows, Federal Reserve Governor Michael Barr has called for clear regulations.

He noted that while stablecoins have great potential, stronger rules and safeguards are needed to protect households, businesses, and the overall financial system. He praised the GENIUS Act for setting rules, but also emphasized that regulators must fill in the gaps to prevent risks like runs or market disruptions.

The Tokenization Boom

CEO Larry Fink recently called tokenization “one of the most exciting growth areas in financial markets.”

Fink believes that tokenisation will help connect traditional finance with the expanding digital asset market. With over $4.5 trillion already sitting in digital wallets, he expects this market to grow rapidly in the coming years.

With stablecoins expected to grow significantly and tokenization emerging as a key trend, BlackRock is leading the way and strengthening its position in the digital asset market.