BlackRock Targets Stablecoin Market With New Fund
BlackRock has restructured one of its money market funds to comply with the GENIUS Act, aiming to attract stablecoin issuers, John Steele, global head of products and platforms at BlackRock’s money management division, told CNBC.
The fund in question, formerly the BlackRock Liquid Federal Trust Fund, has been renamed the BlackRock Select Treasury-Based Liquidity Fund (BSTBL), according to filings with the U.S. Securities and Exchange Commission (SEC).
Previously, the fund invested in U.S. Treasury bonds and cash, but the new structure includes only short-term bonds and overnight repo transactions. The changes took effect on October 14, 2025.
“We want to be — and we believe we are — the preeminent asset manager for stablecoin issuers,” Steele said.
BlackRock already partners with Circle, the issuer of USDC, managing most of the firm’s reserves through the Circle Reserve Fund (USDXX). Steele noted that the restructuring aims to attract additional stablecoin issuers, offering them the same advantages currently available to Circle.
BSTBL Offers Extended Trading and Compliance Benefits
Another key feature of BSTBL is extended trading hours, now running from 2:30 PM to 5:00 PM ET, making it easier for stablecoin issuers to access funds when needed.
Steele added that BSTBL is fully compliant with the GENIUS Stablecoin Act, signed into law by former President Trump in mid-July 2025.
“This will not only help our clients if they decide to issue a stablecoin, but it will also create new distribution opportunities,” Steele said.
Other major asset managers and fintech firms are also adapting funds to serve stablecoin issuers. For example, Fidelity has introduced a treasury-based liquidity fund tailored to crypto-backed assets, while State Street recently extended trading hours on its money market products to support digital asset operations.
