BlackRock launches two tokenized money market funds for stablecoin reserves

BlackRock, the world’s largest asset manager, has expanded its tokenization footprint with the launch of two new onchain money market products, according to an announcement on Monday. 

The OnChain Shares of the BlackRock Select Treasury Based Liquidity Fund (BSTBL) and the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV) aim to blend the liquidity and principal stability of regulated traditional money market funds with the operational efficiencies of blockchain technology, targeting institutional investors and digital-asset market participants, according to the announcement. 

Both funds will invest primarily in cash, short-term U.S. Treasuries, and overnight repurchase agreements collateralized by U.S. Treasuries.

"Cash remains a foundational building block for investors, corporations, and financial institutions," said Jon Steel, global head of product and platform for BlackRock's cash management business. "As demand grows for high-quality reserve assets to support stablecoins and other tokenized financial products, these funds provide clients with additional choice in how they access and use money market fund investment solutions across traditional and digital markets."

The move comes amid a boom in Wall Street tokenization, including in no small part by BlackRock. The asset manager’s first tokenized money market fund, BUIDL, is designed to maintain a stable price of $1 while generating interest from safe investments, which has inspired a number of similar onchain products. 

BUIDL has over $2.6 billion in assets under management, according to RWA.xyz. Since BlackRock and Securitize launched BUIDL in March 2024, "the broader tokenized-asset market has increased from approximately $2 billion to over $37 billion, while tokenized U.S. Treasuries have grown from $721 million to $16 billion — roughly 20x growth in both sectors," a Securitize rep told The Block.

BSTBL introduces a tokenized share class of an existing BlackRock money market fund issued on the Ethereum blockchain. 

Those onchain shares can be transferred between approved investor wallets, subject to applicable regulations. BNY Mellon will serve as the transfer agent and tokenization provider for the shares, as it does for BUIDL. 

Meanwhile, BRSRV is a newly created tokenized money market fund designed specifically for digitally native institutional investors. It features daily dividend reinvestment, multi-blockchain accessibility, and suitability for digital-asset use cases such as stablecoin reserve management, with Securitize acting as its transfer agent and tokenization provider.

Several firms have launched tokenized funds specifically geared for stablecoin reserve management, including Morgan Stanley, State Street, and Fidelity, among others. This comes about a year after the U.S. passed the GENIUS Act, legislating stablecoin issuance and setting rules for reserve management.