A press release titled, "BlackRock Introduces '40 Act 2a7 Money Market Fund in GENIUS-aligned Form," is subtitled, "As BlackRock's cash management business surpasses $1 trillion in assets under management, the firm introduces a GENIUS Act-aligned '40 Act 2a-7 money market fund to meet growing demand in the stablecoin market." It tells us, "BlackRock announced a strategic update to one of its money market funds, reflecting a refined investment approach designed to enhance liquidity, align with emerging regulatory frameworks, and support the evolving needs of clients." (Note: As of Sept. 30, Crane Data shows BlackRock with $665.6 billion in U.S. money funds and $342.4 billion in European or "offshore" money funds, for a total of $1.008 trillion.)
The release states, "The BlackRock Select Treasury Based Liquidity Fund's ('BSTBL') new principal investment strategy is structured to increase the fund's liquidity profile by adding overnight repurchase agreements as an eligible asset, shortening the maturity of investments in U.S. Treasury instruments and removing agency investments. The fund will also provide additional access by extending the fund's trading deadline from 2:30 p.m. ET to 5:00 p.m. ET."
BlackRock's release continues, "BSTBL's investment strategy will also align with the requirements of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), enabling the fund to serve as a reserve asset for payment stablecoin issuers. This strategy opens a new distribution channel, positions the fund for potential future growth, and reinforces BlackRock's mission to broaden investor access through innovative solutions."
Jon Steel, Global Head of Product and Platform within BlackRock's Cash Management business, comments, "We're seeing increasing demand from stablecoin issuers and clients seeking innovative, compliant reserve management solutions. Our BSTBL money market fund builds on our history of innovation through products and marks an exciting new chapter for our cash management business. We're thrilled to deliver a fund that meets the evolving needs of our clients and we believe it positions BlackRock as one of the reserve asset managers of choice for the digital payments ecosystem."
BlackRock states, "The introduction of this updated stablecoin reserve fund reinforces BlackRock's leadership in the digital assets space. BlackRock currently manages the world's largest tokenized private fund [BUIDL] -- a short-term U.S. Treasury strategy -- alongside the largest exchange-traded products for bitcoin and ether <b:>`_. The firm also brings historical expertise in managing stablecoin reserves, further strengthening its position in the evolving digital financial ecosystem."
The release adds, "BlackRock's commitment to continually evolving its product offerings has helped drive growth in the cash management space. By integrating advanced technologies and expanding the suite of their digital asset solutions, BlackRock Cash Management has strengthened their market position as the third largest Rule 2a-7 money market fund provider in the world. The company recently introduced two new money market ETFs, namely the iShares Government Money Market ETF (GMMF) and the iShares Prime Money Market ETF (PMMF), to further broaden investor access and deliver innovative cash management solutions that meet investors where they are."
Finally, it tells us, "In the Earnings Report that was released on October 14, BlackRock announced that its Cash Management business has surpassed the $1 trillion milestone in assets under management, reaching an unprecedented $1,005 billion. This achievement marks a new record for the firm and underscores BlackRock’s leadership in the liquidity management sector."
For more on Stablecoin Reserve funds, see these Crane Data News stories: "Capital Advisors Group's Pan Comments on Laddered SMAs, Stablecoins" (10/6/25), "More Liberty Street Economics: Cautionary Historical Tale on Stablecoins" (10/2/25), "IMMFA on Tokenization of MMFs in Europe; Tether USDT; Fidelity Digital" (9/22/25), "Sept. MFI: Assets Break $7.6T; Stablecoin Reserves; JPM on Offshore MFs" (9/8/25), "Goldman Sachs: Summer of Stablecoin; FT: Banks Lobby to Block Interest" (8/26/25), "FOMC Minutes: RRP, Bills, Stablecoins" (8/21/25), "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle" (8/20/25), "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings" (8/13/25), "August MFI: BNY Portal Tokenizes; ICD's Tory Hazard; Stablecoins in Q2" (8/7/25) and our "BNY's LiquidityDirect Portal Announces Plans to Tokenize Money Funds" (7/24/25).
BlackRock released its Q3'25 earnings earlier this week, and on its earnings call CFO Martin Small comments, "Nonoperating results for the quarter included $84 million of net investment losses, primarily due to a mark-to-market noncash loss linked to our minority investment in Circle.... Our work with clients spans their entire portfolios from long-dated private market exposures to more near-term liquidity needs <b:>. Our cash management platform recently crossed $1 trillion in AUM, with $34 billion of net inflows in the quarter. The platform has grown 45% in just the last 3 years. We're seeing demand across scaled money market funds, customized and tokenized liquidity products and money market ETFs. And our partnership with Circle as the primary manager of their cash reserves is driving meaningful growth. Our mandate surpassed $64 billion this quarter."
During the Q&A, Morgan Stanley's Michael Cyprys asks, "Just wanted to ask about tokenization. I was hoping you could talk about your ambitions and steps that you're taking there, including how you might go about tokenizing ETFs. You already have the tokenizes money fund with BUIDL."
CEO Larry Fink responds, "So first of all, this is probably one of the most exciting potential markets for BlackRock. Let's just start off with our global footprint, with our scale operation in ETFs worldwide and our leading position in terms of digital assets we already are part of. We are having conversations with all the major platforms today about how can we move forward on the whole digitization and tokenization of traditional assets so they could play a role in the role of digital wallets."
