BlackRock deepens crypto ambitions with 2 new stablecoin-linked funds
What's the story
BlackRock is set to launch two new money-market funds. The move is a major boost for the digital dollar economy and comes as part of BlackRock's strategy to tap into the growing interest in blockchain-based assets. The funds are specifically designed for investors who prefer holding their cash in stablecoins instead of traditional bank accounts.
Stablecoin explained
Understanding stablecoins
Stablecoins are digital tokens whose values are tied to other assets, like the US dollar. This stability sets them apart from Bitcoin and other cryptocurrencies whose prices fluctuate based on supply and demand. The unique feature of stablecoins makes them a preferred medium of exchange and store of value for many investors.
Fund specifics
Tokenized version of existing fund
BlackRock has filed to launch a digital version of shares tied to its $6.1 billion BlackRock Select Treasury Based Liquidity Fund (BSTBL). The fund primarily invests in cash, US Treasury securities, and other short-term debt instruments with maturities of up to 93 days. The tokenized securities will be available on the Ethereum blockchain and will work alongside existing traditional shares.
Innovative approach
New tokenized money-market fund
The second fund, dubbed BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV), is a new tokenized money-market fund. It is aimed at investors who manage their finances through crypto wallets and stablecoins instead of traditional brokerage accounts. The fund will operate across multiple blockchains, further expanding BlackRock's reach in the digital asset space.
Market trends
Proposed Genius Act and its impact on stablecoins
BlackRock's new filings come as the proposed Genius Act, a bill seeking to establish federal guidelines for dollar-backed stablecoins, gains traction. The act has sparked interest in blockchain-based reserve assets. As more stablecoins enter the market, issuers are looking for reserve funds that are both Genius-compliant and tokenized to enable 24/7 trading and near-instant settlement.
Market expansion
Tokenization trend on Wall Street
Tokenization, the process of converting traditional assets into blockchain-based tokens, has become a major trend on Wall Street. The market value of tokenized assets has skyrocketed by around 410% since 2025 to some $31 billion. Despite being much smaller than the massive mutual fund and ETF industry, supporters believe this sector has strong potential for future growth.