BlackRock Launches Fund Aligned with New US Stablecoin Law

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 17, 2025

Key Takeaways

BlackRock has revamped a key fund, now called BSTBL, to support stablecoin issuers under new US regulations;
The updated fund now focuses entirely on short-term Treasuries and overnight repos for low-risk, high-liquidity reserve management;
BSTBL offers extended trading hours and a fee structure capped at 0.27% after waivers, valid through June 30, 2026.

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BlackRock has modified one of its key money market funds to fit new rules in the United States for stablecoins, according to a report by CNBC.

The updated product, called the BlackRock Select Treasury Based Liquidity Fund (BSTBL), is aimed at helping stablecoin providers manage their reserves in a safe and reliable way.

This change follows the introduction of the GENIUS Act, signed into law by President Donald Trump. The law provides clear guidance for how stablecoin issuers must handle and invest the money backing their digital tokens.

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According to a filing made with the Securities and Exchange Commission (SEC) in August, the firm restructured its former BlackRock Liquid Federal Trust Fund. Previously, this fund held only cash and short-term US government debt.

Currently, it will focus on short-term Treasury securities and overnight repurchase agreements. BlackRock noted that this approach will provide both high liquidity and low risk.

The updated fund also comes with extended trading and valuation times. It allows trades up until 5:00 PM Eastern Time.

Fees and costs were also outlined in the fund's summary prospectus. BlackRock disclosed a management fee of 0.21%, a shareholder servicing fee of 0.10%, and total expenses of 0.27% after waivers. These waivers are expected to stay in place until June 30, 2026.

Jon Steel, who leads product and platform development in BlackRock’s cash management division, told CNBC that the company sees itself as a leading option for managing reserves tied to stablecoins.

On October 14, BlackRock CEO Larry Fink shared his views on the future direction of financial markets. What did he say? Read the full story.