BlackRock has launched a redesigned version of its flagship money market funds to comply with new federal stablecoin regulations under the GENIUS Act, which took effect in July 2025. The initiative positions the world’s largest asset manager to serve as a key reserve custodian for leading stablecoin issuers as the U.S. government tightens control over the digital asset sector.
According to CNBC, the BlackRock fund will hold only cash and short-term U.S. Treasuries, meeting the GENIUS Act’s one-to-one reserve requirements. The product also includes built-in tokenization capabilities for faster settlements and enhanced transparency, features intended to help issuers such as Circle and Tether manage real-time reserve adjustments.
DustyBC, a crypto influencer, commented on X about the fact, highlighting that “Wall Street is locking in on crypto infrastructure.”
Another influencer replied that Blackrock’s move pumps confidence, steadying stablecoins and unlocking fresh liquidity for alt season.
The GENIUS Act requires monthly third-party audits and prohibits riskier collateral, pushing issuers toward fund managers with institutional-grade systems and government oversight experience. BlackRock’s model is designed to meet both demands simultaneously.
The new fund builds on BlackRock’s expanding digital asset footprint, following its success with the iShares Bitcoin Trust (IBIT). That ETF, launched in January 2024, recently surpassed 800,000 BTC in holdings, making it one of the largest single custodians of Bitcoin globally.
Both the IBIT milestone and the new stablecoin fund reflect a growing convergence between traditional asset management and blockchain-based finance. While the Bitcoin ETF captures institutional demand for digital reserves, the stablecoin fund targets operational liquidity, two pillars of a regulated, tokenized financial ecosystem.
As the GENIUS Act reshapes the market, BlackRock’s role across Bitcoin and stablecoin products signals a long-term strategy spanning both digital reserves and transaction infrastructure.
