BlackRock launched two on-chain money market funds, BSTBL and BRSRV, to provide liquidity and stability for stablecoin reserves and other tokenized financial products.

BSTBL tokenizes a share class of an existing BlackRock money market fund on Ethereum, with transfers between approved investor wallets and BNY Mellon serving as transfer agent and tokenization provider.

Both funds are structured to qualify as eligible reserve assets for permitted U.S. payment stablecoin issuers under the GENIUS Act, the federal stablecoin law enacted in July 2025.

Jon Steel, Global Head of Product and Platform for BlackRock’s Cash Management, said the funds offer clients more choices for accessing money market investment solutions across traditional and digital markets as demand for high-quality reserve assets grows.

BlackRock CFO Martin Small indicated on the Q2 2026 earnings call that the firm aims to be the stablecoin reserve manager of choice, noting it already manages about $60 billion of reserves for Circle and roughly $300 billion in total stablecoin market exposure.

U.S. money market funds have risen to more than $8.4 trillion in assets, and BlackRock’s Cash Management Group oversees nearly $1.073 trillion in cash strategies for a broad range of clients, signaling substantial potential demand for tokenized money market products.

The development signals ongoing efforts to bring regulated money market products onto blockchain platforms and broaden stablecoin reserve asset options for institutional use.

This move extends BlackRock’s tokenized finance push, aiming to provide blockchain-based representations of traditional assets to speed up settlement, enable around-the-clock trading, and improve transparency.

Both BSTBL and BRSRV primarily invest in cash, short-term U.S. Treasuries, and overnight repos collateralized by Treasuries, blending traditional stability with blockchain efficiency.

Industry context: other firms such as Morgan Stanley, State Street, and Fidelity have launched tokenized funds for stablecoin reserves, and GENIUS Act developments have shaped regulatory framing for stablecoins.