BlackRock’s Strategic Shift in Money Market Funds
In an effort to capitalize on the growing market for stablecoins, BlackRock has revamped one of its money market funds to align with the recently enacted GENIUS Act. This transformation was outlined by John Steele, the global head of products and platforms at the firm’s money management division.
Rebranding and Investment Strategy
The money market fund, previously known as the BlackRock Liquid Federal Trust Fund, has been rebranded as the BlackRock Select Treasury-Based Liquidity Fund (BSTBL) following official filings with the U.S. Securities and Exchange Commission (SEC).
The restructuring, which came into effect on October 14, 2025, marks a shift in investment strategy for the fund; it will now focus exclusively on short-term bonds and overnight repurchase agreements, moving away from prior investments in U.S. Treasury securities and cash.
Steele emphasized the firm’s aspirations to become a leading asset manager for stablecoin issuers, claiming, “We want to be — and we believe we are — the preeminent asset manager for stablecoin issuers.”
Partnerships and New Features
Currently, BlackRock has established a partnership with Circle, the organization behind USDC, managing a significant proportion of its reserves through the Circle Reserve Fund (USDXX). Steele indicated that the restructured fund aims to attract more stablecoin issuers by providing them with the same benefits enjoyed by Circle.
An important addition to the BSTBL is the implementation of expanded trading hours, now available from 2:30 PM to 5:00 PM ET, facilitating easier access to liquidity for stablecoin issuers.
Steele remarked, “This will not only help our clients if they decide to issue a stablecoin, but it will also create new distribution opportunities.”
Industry Trends
The move by BlackRock reflects a broader trend in the investment landscape, where other key players like Fidelity and State Street are also adapting their offerings to meet the demands of the digital asset sector. Fidelity has launched a treasury-based liquidity fund specifically focused on crypto-backed assets, while State Street has recently expanded trading hours for its money market products to accommodate operations in digital finance.
