BlackRock rolled out two tokenized money market funds aimed at stablecoin reserves, building on its $2.5B BUIDL fund. The funds target the $300B stablecoin market and GENIUS Act compliance.
BlackRock launched two tokenized money market funds on Thursday, positioning them to serve as reserve assets for stablecoin issuers under the GENIUS Act. The funds were filed with the Securities and Exchange Commission in May.
The BlackRock Select Treasury Based Liquidity Fund (BSTBL) issues shares on Ethereum. The BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV) pays dividends daily and runs on multiple blockchain networks. Securitize, the digital asset infrastructure firm, acts as transfer agent and tokenization provider for BRSRV.
The products extend BlackRock's tokenization push, which began with BUIDL, a money market fund launched with Securitize in 2024. BUIDL has grown to about $2.5 billion and is widely used as collateral in crypto lending and leveraged trading.
BlackRock Chief Financial Officer Martin Small told analysts on the company's second-quarter earnings call that the firm already manages $60 billion in reserves for Circle, the issuer of USDC. That represents roughly a quarter of the $300 billion stablecoin market. "We see lots of growth ahead in stablecoin and we want to be the reserve manager of choice," Small said.
U.S. money market funds hold more than $8.4 trillion in assets. BlackRock's Cash Management Group oversees roughly $1.073 trillion across corporate and institutional clients as well as public-sector entities.
Jon Steel, Global Head of Product and Platform for BlackRock's Cash Management business, said the new funds give clients more options. "As demand grows for high-quality reserve assets to support stablecoins and other tokenized financial products, these funds provide clients with additional choice in how they access and use money market fund investment solutions across traditional and digital markets," Steel said.
The GENIUS Act, a stablecoin regulation bill, would set standards for reserve assets backing U.S. payment stablecoins. BlackRock's funds are designed to meet those standards, the company said. The bill would require issuers to hold reserves in U.S. Treasuries, cash, or equivalent liquid assets. Tokenized money market funds could qualify if they meet specific custody and liquidity rules.
Tokenization digitizes assets like money market funds for easier settlement and transparency. Shares settle 24/7 on blockchain, which suits stablecoin issuers that mint and redeem tokens around the clock. BlackRock's BUIDL already demonstrated that model: the fund processes subscriptions and redemptions on Ethereum, and its shares are used as collateral in DeFi protocols.
The new funds could attract additional stablecoin issuers beyond Circle. BlackRock's cash management scale – $1.073 trillion – gives it a cost and liquidity advantage over smaller competitors. Securitize, which also tokenized BUIDL, recently gained SEC adviser status, a regulatory milestone that may ease future product approvals.
The funds were submitted to the SEC in May. No approval date has been set.
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