BlackRock’s Big Bet on Stablecoins Could Reshape Finance Forever

BlackRock is updating its money market fund to align with the GENIUS Act, aiming to support stablecoin issuers holding high-quality, liquid reserves under the new U.S. framework.

The fund – BlackRock Select Treasury Based Liquidity Fund (BSTBL) – now features a 5 p.m. ET trading deadline and a Treasury-focused mandate, streamlining reserve management for compliant token issuers.

Preparing for GENIUS-Compliant Stablecoins

This overhaul positions BlackRock to benefit from the GENIUS Act, signed by President Trump in July, which sets standards for permitted payment stablecoin issuers, including reserve assets, anti-money laundering, and reporting requirements. Public consultation on the rules began last month as stablecoin issuance is projected to reach $2 trillion by 2028, up from nearly $300 billion today.

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BlackRock’s move complements its digital asset offerings, including a bitcoin ETF, ether ETP, and tokenized liquidity fund, with plans to explore tokenized funds tied to real-world assets. The fund also coincides with the rise of GENIUS-aligned stablecoins, like Anchorage Digital Bank’s USDtb.

The adoption of tokenized money-market products is viewed as modernizing market infrastructure. Analysts predict onchain capital could exceed $100 trillion within five years, highlighting the growing institutional focus on compliant cash-management solutions for stablecoin issuers.