BlackRock Launches Fund for Stablecoin Reserve Management
- BlackRock will adapt its money market fund to serve stablecoin issuers under the GENIUS Act.
- The BlackRock Select Treasury Based Liquidity Fund (BSTBL) will become an approved reserve asset for U.S. stablecoin issuers.
- The fund will remove agency investments, shorten maturity of U.S. Treasuries, and add overnight repurchase agreements.
- BlackRock’s cash management business recently surpassed $1 trillion in assets under management.
- In a previous move, BlackRock led a $400 million funding round for USDC issuer Circle in 2022.
BlackRock is making significant strides in the stablecoin sector by modifying its BSTBL fund to comply with the GENIUS Act, aiming to cater to increased demand from stablecoin issuers for compliant reserve assets.
This strategic shift positions BlackRock as a key player in managing reserve assets within the digital payments ecosystem, further solidifying its influence following its recent milestone of exceeding $1 trillion in cash management assets. (Source)
