BlackRock has revamped one of its money market funds, aiming to appeal to stablecoin issuers. The newly structured product will focus on short-term U.S. Treasury bonds and overnight repurchase agreements (repos), according to John Steele, Global Head of Products and Platforms at BlackRock’s Cash Management division, in an interview with CNBC.
The fund, formerly known as the BlackRock Liquid Federal Trust Fund, has been renamed the BlackRock Select Treasury-Based Liquidity Fund (BSTBL). The restructuring follows provisions of the recently enacted GENIUS law, designed to regulate stablecoins in the United States.
Previously, the fund invested in a combination of cash and Treasury bonds. The updated version now exclusively holds short-term Treasuries and overnight repo agreements. The changes officially took effect on October 14, 2025.
Steele emphasized BlackRock’s ambition to become a leading asset manager for stablecoin issuers. Currently, the company already manages a significant portion of Circle’s USDC reserves through the Circle Reserve Fund (USDXX).
The restructuring is intended to broaden BSTBL’s appeal to other stablecoin issuers, providing them similar benefits as those enjoyed by Circle. Additionally, BlackRock has extended the trading window for the fund’s shares from 2:30 PM to 5:00 PM EST, improving liquidity access for stablecoin clients.
Steele noted that BSTBL fully complies with the GENIUS stablecoin regulations, signed into law by former President Trump in July 2025. He added, “This fund not only assists clients who wish to issue stablecoins but also opens avenues for new distribution opportunities.”
Earlier reports indicate that BlackRock is also considering tokenizing some of its funds, further bridging traditional finance and the crypto ecosystem.
