BlackRock Repositions $BSTBL Fund to Become the Leading Reserve for Stablecoins Under New GENIUS Act Regulations

BlackRock is making a strategic pivot by redesigning its BlackRock Select Treasury-Based Liquidity Fund (BSTBL) to cater directly to the stablecoin market. This move, driven by the new GENIUS Act regulations, positions the asset manager as a critical bridge between traditional finance and the digital asset world.

The core changes to the fund are designed for compliance, safety, and liquidity:

• Treasury Focus: BlackRock has increased the fund's holdings of short-term U.S. Treasuries to ensure the stablecoin reserves are backed by the safest, most liquid, government-backed assets.
• Enhanced Liquidity: By removing agency investments and adding overnight repurchase agreements, the fund can handle rapid, high-volume transactions, ensuring stablecoin issuers have cash immediately available for redemptions.
• Extended Deadline: The daily trading deadline has been extended to 5:00 p.m. ET, offering greater flexibility to global stablecoin companies and market participants.

BlackRock's global head of product, Jon Steel, stated that these updates directly address the demand from stablecoin issuers for a trusted, transparent, and compliant place to store their collateral, which is now mandated by the GENIUS Act.

This initiative is part of BlackRock CEO Larry Fink's broader vision, who sees tokenization as a massive commercial opportunity that can lower costs and increase transparency. With the global stablecoin market projected to reach up to $4 trillion by 2030, and the total value of tokenized assets estimated to surpass $100 trillion within five years, BlackRock is building a dual-track model (BSTBL for reserve compliance and BUIDL for tokenized assets) that is likely to be imitated across the financial industry.

BlackRock's entry provides regulatory assurance and demonstrates that digital assets can coexist safely within the existing financial system.

October 2025, Cryptoniteuae