BlackRock Overhauls Money Market Fund To Serve As Stablecoin Reserve Asset
Synopsis
The investment firm also said the fund will now include overnight repurchase agreements and shorter-term U.S. Treasuries, while removing agency securities.
Larry Fink-led BlackRock (BLK) announced Thursday an overhaul of its BlackRock Select Treasury Based Liquidity Fund (BSTBL) to align the money market fund with the requirements of the GENIUS Act.
The strategic move enables the fund to serve as a reserve asset for payment stablecoin issuers. This means stablecoins backed by this fund would be considered safer and fully compliant with U.S. regulations.
The investment firm also said the fund will now include overnight repurchase agreements and shorter-term U.S. Treasuries, while removing agency securities. This means that the fund can quickly meet redemption demands – crucial for stablecoins, which need liquid, low-risk assets to ensure users can redeem tokens at any time.
In addition, BlackRock extended the fund’s trading window to 5:00 p.m. ET, up from the previous 2:30 p.m. cutoff. The extended hours provide stablecoin issuers with more flexibility to manage reserves and respond to market activity during business hours.
Despite the announcement, BlackRock’s stock edged 0.4% lower in morning trade. However, retail sentiment on Stocktwits around the investment firm remained in ‘extremely bullish’ territory and was accompanied by ‘high’ levels of chatter.
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Read also: Bitfarms Slides On $300 Million Offering After Rallying To Near 4-Year High, Retail Buzz Stays Elevated
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