BlackRock doubles down on stablecoins with new strategy

BlackRock is making a major move into the stablecoin market by redesigning one of its funds to favor the dollar-pegged cryptocurrency, as well as other traditional money-market securities, under new ￰0￱ move aligns with the asset manager’s strategy of capitalizing on the growing demand for compliant, liquid, and transparent reserve options among digital payment ￰1￱ asset manager updated the BlackRock Select Treasury-Based Liquidity Fund (BSTBL) to comply with the GENIUS ￰2￱ positions BSTBL as the go-to fund for stablecoin reserves BlackRock will make its BSTBL the main destination for stablecoin companies to store the reserves backing their digital ￰3￱ has increased the amount of short-term ￰4￱ in the fund because these government-backed assets are the safest and most easily convertible into cash when ￰5￱ company also removed agency investments and added overnight repurchase agreements, so the fund can quickly move money in and out through short-term lending and ￰6￱ significant changes will ensure that the money is always readily available when a stablecoin issuer needs to redeem tokens or handle large cash ￰7￱ daily trading deadline for the fund will be extended from 2:30 ￰8￱ 5:00 ￰9￱ Time, providing companies and investors in various time zones with additional time to complete their ￰10￱ will also be able to balance their cash positions and respond to market changes quickly.

BlackRock’s global head of product and platform for cash management, Jon Steel, said these updates are a direct response to the growing number of stablecoin companies seeking trusted and compliant ways to store their ￰11￱ GENIUS Act requires companies that issue stablecoins to maintain strong and transparent reserves and undergo regular audits to demonstrate that they have sufficient assets to back every token they ￰12￱ said the redesign makes BackRock one of the top choices for stablecoin issuers who need both safety and ￰13￱ investment company’s updated BSTBL fund demonstrates how the worlds of traditional and digital finance are gradually ￰14￱ company’s major change provides stablecoin issuers with a secure place to store their reserves, assuring regulators that reputable companies are managing these ￰15￱ expands digital asset strategy with tokenization and partnerships The asset manager is already working with one of the largest stablecoin issuers, Circle , and also operates BUIDL (a tokenized money market fund that utilizes blockchain to record ownership).

Additionally, the company manages the largest Bitcoin and Ethereum ETFs in the United ￰16￱ giant’s CEO, Larry Fink, stated that tokenization can reduce the need for intermediaries, lower costs, and increase transaction ￰17￱ told investors that the company sees significant commercial opportunities in utilizing tokenization to bridge the gap between traditional and digital ￰18￱ says there is already more than $4.5 trillion worth of assets sitting in digital wallets, so it is essential for a company like BlackRock to develop safe, regulated methods for that money to move and ￰19￱ total stablecoin supply worldwide is approximately $300 billion, and Citi analysts estimate it could grow to $4 trillion by 2030, in the most optimistic ￰20￱ at TD Cowen also believe the value of tokenized assets could exceed $100 trillion within five ￰21￱ is creating products for both traditional institutions and crypto-native companies in its BSTBL fund and its BUIDL tokenized ￰22￱ firm is developing a model that is likely to be imitated by other major organizations in finance, and stablecoin issuers can already utilize BSTBL to maintain their reserves in safe, short-term ￰23￱ while complying with the GENIUS Act .

Digital-savvy investors can also utilize tokenized funds to manage their assets in ￰24￱ market is starting to gain confidence now that laws like the GENIUS Act provide clear rules, and companies like BlackRock are stepping in to build compliant ￰25￱ asset manager’s involvement demonstrates that digital assets can coexist safely within the existing financial system, rather than being outside of ￰26￱ $50 free to trade crypto when you sign up to Bybit now