BlackRock Deepens Crypto Market Bet with New Stablecoin Reserve Fund

BlackRock will debut a GENIUS Act-compliant money market fund for stablecoin reserve custody, providing regulatory-grade solutions to top crypto issuers. The launch marks an institutional shift toward compliance-focused crypto infrastructure.

The initiative arrives as a new US law transforms stablecoin regulations. Major industry players may benefit from improved, transparent custody as compliance rises in importance for digital asset regulation.

Regulation Drives Crypto-Market Change

According to a CNBC report, BlackRock, one of the world’s largest asset managers, is launching a GENIUS Act-compliant money market fund to handle stablecoin reserves. The launch is planned for Thursday.

“BlackRock is building the backbone for regulated stablecoins. This isn’t experimentation; it’s infrastructure. Traditional finance is merging with crypto, piece by piece,” said a crypto influencer on X.

This effort will streamline how stablecoin firms, including Circle and Tether, manage the reserves backing their dollar-pegged tokens.

The GENIUS Act, signed into US law in July 2025, enforces 1:1 backing of stablecoins with cash or short-term Treasuries and mandates monthly third-party audits. These standards boost operational transparency, increasing demand for institutional-grade solutions among leading stablecoin issuers.

With the stablecoin market now valued at over $313 billion and issuers holding over $120 billion in Treasuries, the scale is significant.

BlackRock’s new fund will offer tokenization features, supporting real-time settlements and greater liquidity. The approach follows BlackRock’s prior digital asset work, such as managing USDC reserves and developing tokenized funds on Ethereum networks.

The fund’s launch should attract greater interest from both crypto-native firms and established financial institutions. This broadens stablecoin access, reduces reliance on intermediaries, and ensures efficient custodianship for industry leaders. BlackRock’s action clarifies best practices as the boundary between traditional and crypto finance continues to blur.