BlackRock Unveils Blockchain-Based Money Market Funds for Institutional Investors
BlackRock has expanded its offerings in the digital asset space by launching two blockchain-based money market funds, BSTBL and BRSRV. These new products are designed to cater to institutional investors in digital-asset markets and provide a stable and liquid investment option for managing stablecoin reserves.
BSTBL is a tokenized version of BlackRock's traditional Select Treasury Based Liquidity Fund, which issues shares on the Ethereum blockchain as tokens that can be transferred between wallets of approved investors. BNY Mellon is responsible for investor recordkeeping and token issuance.
BRSRV is a newly created tokenized money market fund specifically designed for institutional investors in digital-asset markets. It automatically reinvests daily dividends and can be used across multiple blockchains, making it an attractive option for stablecoin issuers to manage their reserves.
The two funds invest in cash, short-term US Treasuries, and ultrashort repurchase agreements backed by US Treasuries, aiming to preserve liquidity and principal stability. According to Jon Steel, BlackRock's global head of product and platform for cash management, the rising demand for high-quality reserve assets that can support stablecoins and tokenized financial products drove the creation of these new products.