BlackRock launches two tokenised money market funds for stablecoin reserves

BlackRock is introducing two new tokenised money market products structured as reserve assets for US stablecoin issuers. The products align with the requirements of the GENIUS Act, the US law that sets rules for payment stablecoins.

Ethereum is available at OKX and Bybit.

In brief:

• BlackRock launches two tokenised money market funds: BSTBL on Ethereum and BRSRV on multiple blockchains.
• Both products are set up as reserves for licensed US stablecoin issuers under the GENIUS Act.
• BlackRock already manages around $60 billion in reserves for stablecoin issuer Circle.

Two products, two target audiences

The first product is called BSTBL OnChain Shares and is a tokenised share class of an existing money market fund on the Ethereum blockchain. The shares are transferable between approved investor wallets, within the limits of applicable law. BNY acts as transfer agent and tokenisation provider for this product.

The second product, BRSRV, is an entirely new tokenised money market fund designed specifically for institutional investors active in digital assets. The fund supports multiple blockchains, reinvests dividends daily and is suitable for a wide range of purposes involving digital assets, including the management of stablecoin reserves. Securitize provides tokenisation and transfer agent services for BRSRV. BusinessWire reports more details about the launch.

Aligning with the GENIUS Act

Both funds are structured so that the underlying assets qualify as reserves for licensed US payment stablecoin issuers, in accordance with the GENIUS Act. The law sets out which assets stablecoin issuers may hold as reserves.

BlackRock is no stranger in this area. The company already manages approximately $60 billion in reserves for Circle, the issuer of the USDC stablecoin. With the two new products, BlackRock is expanding its offering for parties seeking regulated and tokenised reserve solutions. The demand for stablecoin reserves is increasing worldwide as more and more countries introduce legislation around digital payment instruments.

Ethereum as the foundation

The choice of Ethereum as the basis for BSTBL is notable but not surprising. The blockchain is regarded as the most widely used for tokenised financial products. Ethereum is trading at $1.900 at the time of writing, up 0.7% over the past 24 hours.

With the launch of BSTBL and BRSRV, BlackRock is taking the next step in tokenising traditional financial products on public blockchains, a trend that is gaining increasing traction among major asset managers.