BlackRock Enters Stablecoin Reserve Race with Tokenised Money Market Funds

BlackRock has launched two tokenised money market funds to serve as reserves for stablecoin issuers. The move deepens its push into blockchain-based finance and positions the firm as a safe, yield-bearing asset for issuers to hold against their tokens.

The first fund, BSTBL, is a tokenised share class of an existing BlackRock money market fund issued on Ethereum. The second fund, BRSRV, is a new vehicle built specifically as a stablecoin reserve with daily dividend reinvestment and access across multiple blockchains.

'We see lots of growth ahead in stablecoin and we want to be the reserve manager of choice,' said BlackRock chief financial officer Martin Small. The firm already manages tens of billions of dollars in stablecoin reserves.

The market for tokenised assets has grown rapidly, with the broader market swelled from about $2bn to $37bn since last year. BlackRock's first tokenised fund, BUIDL, launched in 2024 and now holds around $2.5bn.