BlackRock’s GENIUS Act Fund Supports Stablecoin Reserves
BlackRock has relaunched its flagship money market fund, now called the BlackRock Strategic Treasury Liquidity Fund (BSTBL), to meet the GENIUS Act’s stablecoin reserve requirements. BSTBL invests 100% in short-term U.S. Treasuries and overnight repos. Trading hours extend to 5 pm ET, and the fund charges a net 0.27% fee through June 2026. Approved by the board, BSTBL targets institutional investors, including stablecoin issuers such as Circle’s USDC, offering transparent custody via BlackRock’s $1 trillion cash portfolio and existing Treasury partnerships. This fund gives stablecoin issuers a clear path to manage stablecoin reserves and strengthens market confidence by delivering fully backed stablecoin reserves. The move enhances BlackRock’s digital asset strategy, which includes a Bitcoin ETF, Ethereum products and a BUIDL Liquidity Fund. Analysts see stablecoin reserves surging from $280 billion today to $4 trillion by 2030, highlighting the fund’s market potential.
Bullish
The launch of a GENIUS Act–compliant money market fund directly addresses stablecoin issuers’ demand for fully backed reserves. In the short term, BSTBL’s extension of trading hours, low fee and 100% U.S. Treasury allocation will enhance liquidity and reduce funding costs for stablecoin issuers like USDC. Over the long term, tying stablecoin reserves to high-quality Treasuries and leveraging BlackRock’s $1 trillion cash portfolio increases institutional confidence, supports regulatory compliance and paves the way for stablecoin supply growth. Analysts’ projection of reserve growth to $4 trillion by 2030 underscores the bullish impact on the stablecoin ecosystem, likely driving inflows into USDC and related crypto assets.