BlackRock Launches BSTBL Fund to Support Stablecoin Reserve Management

BlackRock has launched the BlackRock Select Treasury Based Liquidity Fund, designed to meet GENIUS Act’s requirements, aiding stablecoin issuers with U.S. Treasury investments and flexible trading hours.

This offering enhances regulatory-compliant reserve options for stablecoin issuers, potentially increasing demand for U.S. Treasuries and strengthening BlackRock’s position in digital payment ecosystems.

BlackRock’s BSTBL Fund Debuts Amid Regulatory Scrutiny

BlackRock launched the BSTBL Fund in October to support stablecoin reserve management. This fund, designed to align with the GENIUS Act, is now available in the U.S. It offers stablecoin issuers a reserve asset option amid growing regulatory scrutiny.

The fund implements overnight repurchase agreements and adjusts the investment duration for U.S. Treasury instruments. The extended trading cutoff time to 5:00 PM Eastern Time aims to provide more investment flexibility in today’s fast-paced market environment. More details can be found in the BlackRock Liquidity Cash Reserve Shares Prospectus January 2025.

“We’re seeing increasing demand from stablecoin issuers and clients seeking innovative, compliant reserve management solutions. Our BSTBL money market fund builds on our history of innovation through products and marks an exciting new chapter for our cash management business. We’re thrilled to deliver a fund that meets the evolving needs of our clients and we believe it positions BlackRock as one of the reserve asset managers of choice for the digital payments ecosystem.”

Treasuries and Trading Times: Key Features of the BSTBL Fund

Did you know? BlackRock’s BSTBL Fund is reminiscent of Circle’s USD Coin (USDC) reserves with Treasuries, but it marks a first under the GENIUS Act, setting a regulatory benchmark for stablecoin reserves in the U.S.

CoinMarketCap data shows USDC, a major USD-pegged stablecoin, maintains a stable price of $1, with a market cap of $76.05 billion and dominant market presence of 2.01%. Trading volume dropped by 20.71% to $19.59 billion in 24 hours. The price recorded negligible movement over 24 hours but shows a 2.65% decline over the last month, as of 13:56 UTC, Oct 16, 2025.

According to Coincu research, the BlackRock’s BSTBL Fund boosts stablecoin market credibility, leading to potentially larger adoption of compliant reserve management. It may encourage regulators to consider similar actions internationally, decreasing risks associated with unregulated reserve assets. For more information on BlackRock’s strategies and fund details, refer to the BlackRock Liquid Federal Trust Fund Overview and Details.