Key Takeaways
- The asset management giant is strengthening its presence in digital finance with a new effort aimed at the stablecoin sector, updating one of its long-running liquidity funds to meet the needs of stablecoin issuers.
- BlackRock’s former Liquid Federal Trust Fund has been rebranded as the BlackRock Select Treasury Based Liquidity Fund (BSTBL). The fund will now hold only U.S. Treasury bills, notes, and overnight repurchase agreements with short maturities to ensure safety and liquidity.
- The revamped structure adheres to the GENIUS Act, the legislation that introduced the nation’s first formal rules for stablecoin reserve management and transparency.
- With a simplified risk profile and a stronger regulatory footing, the BSTBL is designed to provide stablecoin issuers with a compliant reserve solution, placing BlackRock at the intersection of traditional finance and digital money.
BlackRock is expanding its presence in the world of digital finance with a new initiative focused on the growing stablecoin market.
As reported by CNBC, the firm, which manages about 13.5 trillion dollars in assets, has redesigned one of its money market funds, known as the BlackRock Select Treasury Based Liquidity Fund (BSTBL), to help issuers of U.S. dollar-pegged stablecoins manage their reserves in a secure and regulated environment.
The new structure, according to the company, aligns with the GENIUS Act, the United States stablecoin law signed earlier this year by President Donald Trump, which established the country’s first formal framework for reserve management and compliance in the stablecoin market.
“We want to be, and we believe we are, a preeminent reserve manager for stablecoin issuers,” said Jon Steel, global head of product and platform for BlackRock’s cash management business.
Detailed Overview of the Fund’s Structural Changes
The restructured fund, which is considered at the center of BlackRock’s latest digital finance push, was originally known as the BlackRock Liquid Federal Trust Fund, a long-standing money market vehicle designed to provide income while maintaining liquidity and stability. Managed under BlackRock’s Liquidity Funds umbrella, it traditionally invested in short-term government and agency securities, offering institutional clients a low-risk way to manage cash.
According to a supplement filed by BlackRock on August 15, 2025, the fund has been officially renamed the BlackRock Select Treasury Based Liquidity Fund (BSTBL) and now follows a more focused, Treasury-centered investment strategy.
The updated portfolio invests entirely in U.S. Treasury bills, notes, and overnight repurchase agreements with maturities of 93 days or less, ensuring that its holdings remain short-term, high-quality, and easily liquidated.
BlackRock also fine-tuned the fund’s operations. The net asset value (NAV) will be calculated each business day at 6:00 p.m. Eastern Time, and the cut-off time for purchases and redemptions is now set at 5:00 p.m. These updates are intended to improve efficiency and align the fund’s processes with the needs of modern institutional investors.
The fund’s risk profile has also been simplified, improving exposure to trading, variable-rate instruments, and non-Treasury government obligations, while adding a focus on repurchase agreement risk, highlighting the potential impact if a counterparty fails to meet its commitments.
Beyond these adjustments, the fund continues to operate under Rule 2a-7 of the Investment Company Act of 1940, which enforces strict quality and diversification standards for money market funds. Its investment manager remains BlackRock Advisors, LLC, which oversees all investment decisions and portfolio transactions.
In summary, the BSTBL has been reshaped into a Treasury-only liquidity fund aimed at meeting tighter regulatory expectations and the growing demand for secure, transparent reserve management. The fund’s new design aligns with the broader shift in U.S. financial policy under the GENIUS Act, positioning it to play a key role in how traditional finance supports the evolving stablecoin market.
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