In a major boost to the digital-dollar economy, BlackRock Inc. is planning to launch two money-market funds built for investors who hold their cash in stablecoins and not bank accounts.
What are stablecoins?
Stablecoins are digital, cryptographic tokens whose values are pegged to those of other assets, like the U.S. dollar, as per Brookings.
This feature differentiates stablecoins from bitcoin and other crypto assets whose values fluctuate with supply and demand and makes them a more popular alternative as a medium of exchange and a store of value
Here what you need to know about BlackRock's new money-market funds
The company submitted paperwork to launch a digital version of shares linked to its $6.1 billion BlackRock Select Treasury Based Liquidity Fund (BSTBL), which mainly invests in cash, US Treasury securities, and other short-term debt instruments that mature within 93 days.
The tokenized securities will be available on the Ethereum blockchain, and operate along with current traditional shares.
The second product, called BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV), is a new tokenized money-market fund designed for investors who manage their finances through crypto wallets and stablecoins instead of traditional brokerage accounts.
According to a filing made with the US Securities and Exchange Commission on Friday, the fund will operate across multiple blockchains.
BlackRock’s new filings come at a time when the proposed Genius Act — a bill aimed at creating federal rules for dollar-backed stablecoins, or digital tokens linked to the US dollar — is boosting demand for blockchain-based reserve assets.
Bloomberg report says, as more stablecoins come to market, issuers are seeking reserve funds that are both Genius-compliant and tokenized to allow for round-the-clock trading and near-instant settlement.
Market for tokenized assets skyrockets 410% since 2025
Tokenization involves turning conventional assets such as stocks, bonds or private loans into blockchain-based tokens that confer fractional ownership. It’s become one of the hottest trends as Wall Street continues to court crypto-native capital. The market value of tokenized assets has surged about 410% since 2025 to roughly $31 billion, according to data provider rwa.xyz.
Although the sector is still much smaller than the massive mutual fund and ETF industry, supporters believe it has strong potential for future growth.
BlackRock was among the early movers in the space with its blockbuster fund, BlackRock USD Institutional Digital Liquidity Fund (ticker BUIDL), now at roughly $2.5 billion.
BUIDL, launched in 2024, has grown into one of the largest funds in its category. BlackRock’s push into tokenization has been championed by Chief Executive Officer Larry Fink, who has repeatedly said that every financial asset will eventually be tokenized — a view he reiterated in his latest annual letter to investors.
(With inputs from Bloomberg)
