BlackRock has introduced a GENIUS Act-aligned version of its Select Treasury Based Liquidity Fund, positioning the vehicle to serve as reserve backing for payment stablecoin issuers.
The update gives the institutional money market fund a refined investment mandate intended to boost same day access to cash while meeting new federal requirements for dollar pegged tokens.
The fund will add overnight repurchase agreements to its eligible assets, shorten the maturity profile of U.S. Treasury holdings, and remove agency securities.
BlackRock is also pushing the trading deadline to 5 p.m. ET, a shift aimed at supporting late day flows without sacrificing liquidity.
The firm says the strategy now aligns with the Guiding and Establishing National Innovation for U.S. Stablecoins Act, allowing the fund to operate as a compliant reserve asset for issuers.
Washington’s new stablecoin law created the first federal framework for payment tokens and requires issuers to hold 100% liquid reserves such as cash or short dated Treasuries, with monthly public disclosures of reserve composition.
BlackRock said this week its cash management business has topped $1 trillion in assets under management, a milestone that reflects rising demand for short term vehicles while policy rates remain restrictive.
The firm framed stablecoin reserves as a new distribution channel for a product set already designed around daily liquidity and high quality collateral.
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Jon Steel, global head of product and platform in BlackRock’s cash management unit, said in a press release that clients are looking for innovative, compliant reserve management solutions, adding that the revamped fund marks an exciting new chapter for the business.
The company also points to its growing digital asset footprint, which includes management of tokenized Treasuries and leadership in exchange-traded products tied to bitcoin and ether.
The firm manages the Circle Reserve Fund, a Rule 2a-7 government money market fund used for a significant share of USDC reserves, according to product disclosures and regulatory filings.
This gives BlackRock a track record in marrying short term Treasury markets with the operational demands of always-on digital payments.
Franklin Templeton joins forces with Binance to expand tokenized securities distribution, a sign that mainstream firms see long-term value in moving cash-like instruments on chain.
Listings and capital-markets activity around crypto are also creeping into the core of finance, as seen when Gemini goes public on Nasdaq, even as U.S. lawmakers continue to debate broader digital-asset policy.
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The combination of a clearer legal framework and institutional grade reserve management suggests stablecoin backing is converging with the same tools that corporate treasurers have used for decades.
