BlackRock Turns Its BSTBL Fund Into a Stablecoin Reserve Powerhouse Under New U.S. GENIUS Act Rules

BlackRock revamps its BSTBL fund to serve as the primary reserve platform for stablecoin issuers.

The redesign aligns with the U.S. GENIUS Act, emphasizing liquidity, safety, and transparency.

BlackRock expands digital asset focus as analysts predict major growth in tokenized assets by 2030.

BlackRock has redesigned its Select Treasury Based Liquidity Fund (BSTBL) to become the main reserve vehicle for stablecoin companies. The $13.5 trillion asset manager said the updated fund will help issuers comply with new U.S. rules under the GENIUS Act while ensuring safety, liquidity, and transparency.

BlackRock Restructures BSTBL Fund for Stablecoin Reserves

BlackRock confirmed that its BSTBL fund will now serve as a core platform for stablecoin issuers to store reserves backing their tokens. The company increased exposure to short-term U.S. Treasuries and added overnight repurchase agreements to improve liquidity and redemption flexibility.

The fund will no longer hold agency investments and will instead maintain only ultra-liquid government-backed assets. Daily trading hours were extended from 2:30 p.m. to 5:00 p.m. Eastern Time to help global clients settle transactions more efficiently. BlackRock said these adjustments make BSTBL one of the most accessible and compliant vehicles for stablecoin reserve management.

Jon Steel, BlackRock’s global head of product and platform for cash management, told CNBC that the changes directly address “a growing demand from stablecoin companies seeking trusted and transparent reserve solutions.” The new structure ensures funds remain readily available for redemptions and large transfers.

BlackRock Deepens Digital Asset Strategy Amid New US Rules

The redesigned fund aligns with the GENIUS Act, the first federal law regulating stablecoins in the U.S., which requires issuers to maintain strong reserves and undergo monthly audits. The act was signed earlier this year to bring transparency and oversight to the fast-growing stablecoin market.

BlackRock already manages reserves for Circle, the issuer of USDC, and operates BUIDL, a tokenized money market fund using blockchain for ownership records. The firm also offers Bitcoin and Ethereum ETFs, strengthening its presence across both traditional and digital markets.

CEO Larry Fink said tokenization will “reduce costs and improve transparency,” and the company expects future growth in this area. With the global stablecoin supply near $300 billion, analysts from Citi forecast it could reach $4 trillion by 2030, while TD Cowen predicts tokenized assets could surpass $100 trillion within five years.

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