BlackRock Expands Stablecoin Push With Fund to Manage Reserve Assets

Core Viewpoint - BlackRock is significantly increasing its involvement in the stablecoin market by retooling one of its money market funds to serve U.S. stablecoin issuers, aligning with the recently passed GENIUS Act [1][3]. Group 1: Fund Adjustments - The BlackRock Select Treasury Based Liquidity Fund (BSTBL) will eliminate agency investments, reduce the maturity of U.S. Treasury investments, and include overnight repurchase agreements as eligible assets to comply with GENIUS and enhance liquidity for stablecoin issuers [2]. - This strategic adjustment positions the fund as a compliant and liquid reserve asset for stablecoin issuers [2]. Group 2: Market Demand and Positioning - There is a growing demand from stablecoin issuers for reserve management options following the passage of the GENIUS Act, indicating a shift in the market landscape [3]. - BlackRock aims to establish itself as a preferred reserve asset manager within the digital payments ecosystem, reflecting its commitment to the evolving financial technology landscape [3]. Group 3: Financial Milestones - BlackRock's cash management business has reached a significant milestone, surpassing $1 trillion in assets under management for the first time [4]. - The firm has also achieved notable success with its spot Bitcoin and Ethereum ETFs, which are currently the largest trading products on Wall Street [4]. Group 4: Previous Investments and Future Plans - BlackRock previously led a $400 million funding round for Circle, the issuer of USDC, positioning itself as a primary holder of Circle's reserves [4]. - The company's CEO, Larry Fink, has indicated that BlackRock is developing technology to tokenize various traditional assets, emphasizing the need for rapid advancement in this area [5].