BlackRock has restructured one of its money market funds to make it more attractive to stablecoin issuers. The relevant changes have been implemented in the BlackRock Liquid Federal Trust Fund, which has been renamed the BlackRock Select Treasury Based Liquidity Fund (BSTBL). The update took place in accordance with the requirements of the GENIUS Act, which was signed by U.S. President Trump in July 2025.
This is reported by Finway
Features of the Updated BSTBL Fund
According to documents submitted to the SEC, the BSTBL fund now invests exclusively in short-term U.S. Treasury bonds and overnight repurchase agreements. The previous structure allowed for investments in cash as well, but the focus is now on the most liquid and safe assets. The changes took effect on October 14, 2025.
Another important innovation is the extension of trading hours for the fund’s shares: transactions are now possible until 5:00 PM Eastern Standard Time (EST), allowing stablecoin issuers to access liquidity more quickly when needed.
“We want to be — and we believe we are — a leading asset manager for stablecoin issuers,” noted Steele.
BlackRock’s Strategy for the Stablecoin Market
BlackRock already has experience working with key market players: the company manages a significant portion of Circle’s reserves, the issuer of USDC, through the Circle Reserve Fund (USDXX). With the restructuring of BSTBL, the corporation aims to attract a broader range of stablecoin issuers, offering them the same advantages that Circle already enjoys.
John Steele, Global Head of Products and Platforms in BlackRock’s Cash Management division, emphasized that the new product meets both market needs and regulatory requirements. Special emphasis is placed on the full compliance of BSTBL with the GENIUS Act, which regulates the activities of stablecoin issuers in the U.S.
“This will not only help our clients if they want to issue stablecoins […] but will certainly create potential for new distribution opportunities,” believes Steele.
It was previously reported that BlackRock is also considering the tokenization of its exchange-traded funds, which could be the next step in the development of the company’s digital financial products.