BlackRock Launches Two Tokenized Funds, Targeting Stablecoin Reserve Asset Market

▲ BlackRock (NYSE: BLK)/Source: X ©

BlackRock, the world's largest asset manager, has expanded its cash management business into stablecoin infrastructure by launching two money market funds utilizing Ethereum (ETH) and multiple blockchains.

According to investment media FXStreet on August 4 (local time), BlackRock introduced the BlackRock Select Treasury-based Liquidity Fund (BSTBL) and the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV). Both products are characterized by combining the liquidity and stability of regulated money market funds with blockchain technology.

BSTBL is a product that tokenizes existing money market fund shares on Ethereum. Shares can be transferred between approved investor wallets in accordance with relevant regulations, and BNY Mellon participates as the transfer agent and tokenization service provider. BRSRV is a new tokenized money market fund aimed at institutional investors familiar with the digital asset market, designed to reinvest dividends daily and be accessible across multiple blockchains. Securitize handles the transfer agency and tokenization.

Both funds invest in cash, short-term U.S. Treasury bills, and overnight repurchase agreements collateralized by U.S. Treasury securities. BlackRock stated that this strategy is designed to serve as eligible reserve assets for U.S. payment stablecoin issuers authorized under the GENIUS Act, the U.S. stablecoin regulatory law enacted in 2025. The idea is to provide tokenized cash management products as a means for managing stablecoin reserves.

BlackRock's Cash Management Group manages cash management strategies totaling approximately $1.073 trillion for corporations, banks, foundations, insurance companies, and public funds. The total size of the U.S. money market fund market has exceeded $8.4 trillion. Jon Steel, Global Head of Product and Platform for BlackRock's Cash Management business, explained that as investors prioritize liquidity, capital preservation, and earning potential, the demand for high-quality stablecoin reserve assets is also growing.

This launch is a subsequent expansion of BlackRock's flagship tokenized real-world asset (RWA) product, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). BUIDL, launched in 2024 with Securitize, primarily invests in cash, short-term U.S. Treasury bills, and repurchase agreements, representing investor ownership as blockchain tokens. BlackRock plans to modernize the trading and settlement of traditional financial products while expanding digital cash management options for institutional investors through BSTBL and BRSRV.

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