BlackRock Rolls Out BSTBL Fund to Court Stablecoin Issuers Under U.S. GENIUS Act Framework

World’s Largest Asset Manager Repositions Treasury Liquidity Vehicle to Capture $300B Stablecoin Market Surge

TL;DR:

• BlackRock launches the “BlackRock Select Treasury Based Liquidity Fund (BSTBL)” tailored for stablecoin reserve management under the new U.S. GENIUS Act.
• The fund targets stablecoin issuers seeking compliant exposure to U.S. Treasuries and repos, extending trading cutoffs and lowering fees through 2026.
• Analysts see the move as a strategic shift positioning BlackRock for the projected $2–4 trillion stablecoin expansion over the next decade.

BlackRock has unveiled the BlackRock Select Treasury Based Liquidity Fund (BSTBL), a revamped money market fund designed to serve as a stablecoin reserve vehicle under the recently enacted GENIUS Act. The launch, disclosed around October 16, 2025, marks a calculated push by the world’s largest asset manager into the heart of digital finance infrastructure—targeting an industry now exceeding $302 billion in circulating stablecoins.

The new BSTBL structure is optimized for compliance with the GENIUS Act, the first U.S. federal framework for stablecoin oversight signed in July 2025. The legislation mandates that issuers fully back their tokens with high-quality liquid assets such as U.S. Treasuries, ensure one-to-one redemption at par, and maintain public reserve attestations alongside strict anti-money-laundering and reporting obligations. By aligning the fund with these rules, BlackRock positions itself as a turnkey reserve manager for issuers seeking credibility and safety within regulatory bounds.

BlackRock’s statement framed the move as a response to “increasing demand from stablecoin issuers and clients seeking innovative, compliant reserve management solutions.” Executives emphasized that BSTBL “builds on our history of innovation and positions BlackRock as one of the reserve asset managers of choice for the digital payments ecosystem.” The comments reflect a clear evolution from the firm’s earlier roles—such as managing portions of Circle’s $64 billion USDC reserve portfolio—toward becoming an active participant in the core plumbing of tokenized money.

The BSTBL portfolio centers exclusively on short-dated U.S. Treasury securities and overnight repurchase agreements, stripping out agency bonds to minimize risk exposure and satisfy the GENIUS Act’s “safe and liquid” requirements. To enhance issuer flexibility, BlackRock extended the daily order cutoff time to 5:00 p.m. ET, up from the previous 2:30 p.m., and adjusted mark-to-market valuation windows to allow more dynamic intra-day pricing. The management fee stands at 0.21%, with an additional 0.10% shareholder servicing fee, bringing total expenses to 0.27% after waivers. Those waivers will remain active through June 30, 2026, an incentive likely aimed at early institutional adopters.

The fund’s rebranding from the former BlackRock Liquid Federal Trust Fund to BSTBL was quietly filed with the SEC in August 2025, signaling months of preparation before the public reveal. Observers note that the change effectively transforms a traditional liquidity vehicle into a new-generation bridge between regulated finance and blockchain-based money markets. For BlackRock, it represents a pivot from passive crypto exposure—such as Bitcoin ETFs—toward a role in shaping the architecture of digital dollars themselves.

Analysts cited by several industry outlets predict the stablecoin sector could balloon to $2–4 trillion in issuance by 2028–2030, with the broader on-chain asset base possibly surpassing $100 trillion within five years as tokenized treasuries, funds, and securities gain traction. With more than $1 trillion already under management in its cash division, BlackRock wields the scale to become a preferred reserve custodian across compliant issuers. The firm’s early integration of BSTBL into GENIUS-aligned liquidity management could help establish de facto standards for institutional stablecoin backing—an area still lacking uniform practice despite rapid adoption.

Extending its trading hours and simplifying the asset mix gives BSTBL distinct appeal to stablecoin operators who must meet redemption and issuance demands around the clock. The decision to forgo agency debt for pure Treasuries and repos suggests BlackRock’s anticipation of tougher reserve definitions under U.S. oversight. Meanwhile, the temporary fee waivers through 2026 highlight an aggressive acquisition strategy, potentially sacrificing short-term yield margins to dominate a segment that remains underdeveloped but increasingly systemically relevant.

The creation of BSTBL signals a strategic recalibration for BlackRock—a step beyond digital-asset experimentation toward direct participation in the infrastructure of programmable money. Whether stablecoin legislation evolves rapidly or remains in flux, the fund’s timing and structure suggest BlackRock intends to anchor itself at the regulatory center of the next phase of crypto-linked liquidity management.

This article has been refined and enhanced by ChatGPT.