BlackRock has taken another major step into digital finance, refitting one of its long-standing money market funds to serve the booming U.S. stablecoin industry.
The firm confirmed the launch of the BlackRock Select Treasury Based Liquidity Fund (BSTBL), a restructured version of its former Liquid Federal Trust Fund. The fund will now hold only short-term Treasuries and overnight repo agreements, creating what BlackRock calls a “safe, liquid base” for companies managing reserves behind dollar-pegged stablecoins.
The redesign aligns with the GENIUS Act, the new law signed by President Donald Trump that sets national standards for how stablecoin issuers store and invest customer-backed reserves. BlackRock says the fund’s structure meets those requirements and positions it as a leading candidate for managing institutional stablecoin reserves.
“We intend to be the go-to reserve manager for stablecoin issuers,” said Jon Steel, who oversees BlackRock’s cash management division.
The updated fund also introduces longer trading hours, streamlined liquidity operations, and a capped expense ratio of 0.27% through 2026.
Part of a Larger Digital Push
The move deepens BlackRock’s digital asset presence following its Bitcoin and Ethereum ETFs and its tokenized BUIDL liquidity fund, launched earlier this year. The company already manages part of the reserves for Circle’s USDC, and insiders say BSTBL will help expand that model to other issuers.
With the stablecoin market expected to explode from $280 billion to nearly $4 trillion by 2030, according to Citi, BlackRock’s new fund gives it a direct role in shaping how digital dollars are backed, regulated, and traded.
Source
