BlackRock to Launch GENIUS-Compatible Fund for Stablecoin Issuers

• BlackRock Reformulates BSTBL Fund to Comply with the GENIUS Act
• Focus on safe reserves for stablecoin issuers
• Part of BlackRock's expansion into tokenization and digital assets

BlackRock has revamped its BSTBL money market fund to meet the new requirements of the GENIUS Act, a federal initiative that establishes rules for stablecoin issuers in the United States. This move reinforces the asset manager's strategy of positioning itself as an institutional partner for issuers of tokens backed by high-quality, liquid reserves.

The product, now called BlackRock Select Treasury Based Liquidity Fund (BSTBL), has been adjusted to focus on U.S. Treasuries and has new trading hours, closing at 17 p.m. Eastern Time. change reflects the company's intention to optimize reserve management for stablecoin issuers seeking compliance with federal standards set by the GENIUS Act.

The legislation, signed into law by President Donald Trump in July, marks the first federal regulatory framework for stablecoins in the country. It requires issuers classified as Payment Stablecoin Issuers (PPSIs) to hold highly liquid reserve assets—primarily short-term Treasuries—and follow compliance and financial reporting standards. The U.S. Treasury recently opened a public comment period to finalize the regulations before full implementation.

BlackRock, which already manages tokenized and digital products, sees the move as an opportunity to expand its presence in on-chain finance. The launch of BSTBL complements the company's digital portfolio, which includes the BUIDL tokenized fund, the spot Bitcoin ETF, and the Ether ETP. The company has also been conducting research on tokenized funds backed by real-world assets (RWA), strengthening its involvement with blockchain infrastructure.

The BSTBL redesign coincides with the advancement of GENIUS-compatible stablecoins. In July, Anchorage Digital Bank—a federally chartered bank—announced a partnership with Ethena Labs to launch USDtb, considered the first fully compliant stablecoin.

With the rapid growth of tokenization, analysts project that global stablecoin issuance could surpass $2 trillion by 2028, while the asset tokenization market could surpass $100 trillion within five years. In this context, BlackRock's new fund positions itself as a strategic player in connecting traditional money market infrastructure to the next generation of digital finance.