BlackRock Launches Two Tokenized Money Market Funds for Stablecoin Reserves

BlackRock, the world's largest asset manager, has introduced two tokenized money market funds designed for stablecoin reserve management.

The Block, a crypto-focused media outlet, reported on August 3 that BlackRock formally announced the launch of BSTBL, or BlackRock Select Treasury Based Liquidity Fund OnChain Shares, and BRSRV, or BlackRock Daily Reinvestment Stablecoin Reserve Vehicle. Both products primarily invest in cash, short-term US Treasuries and overnight repurchase agreements backed by US Treasuries. They are aimed at institutional investors and participants in digital-asset markets.

Demand for high-quality reserve assets backing stablecoins and other tokenized financial products is rising, John Steil, BlackRock's global head of product and platform for cash management, said in a statement. The new funds give investors more options in how they access and use money market fund solutions across traditional and digital markets.

The two products have different structures. BSTBL issues a tokenized share class of an existing BlackRock money market fund on the Ethereum blockchain, with BNY Mellon providing transfer agency and tokenization services. BRSRV is a newly designed fund for digital-asset-native institutional investors. It offers daily dividend reinvestment and multi-blockchain access, while Securitize provides tokenization services.

The launch comes amid Wall Street's broader push into tokenization of real-world assets. BUIDL, BlackRock's first tokenized money market fund launched with Securitize in March 2024, now manages more than $2.6 billion in assets. Securitize told The Block that since BUIDL's launch, the overall tokenized asset market has grown roughly 20-fold, from about $2 billion to more than $37 billion. Tokenized US Treasuries also expanded about 20-fold, from $721 million to $16 billion.

Morgan Stanley, State Street and Fidelity have already entered the market for tokenized funds tailored to stablecoin reserve management. The new products were launched about a year after passage of the GENIUS Act, which codified rules for stablecoin issuance and reserve management in the US.