BlackRock doubles down on tokenization with new stablecoin reserve funds

BlackRock plans to launch two tokenized money market funds for stablecoin issuers as CEO Larry Fink doubles down on tokenization.

The first proposed fund, called the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle is a Treasury-backed money market fund built for blockchain-based ownership and transfers. It will invest in ultra-short-term US government securities and repo agreements while issuing onchain shares held through approved crypto wallets.

Designed for the stablecoin ecosystem, BlackRock intends the vehicle to qualify as an eligible reserve asset under the GENIUS Act, the US law establishing a framework for payment stablecoins. Stablecoin issuers and crypto-native institutions could then use the fund as part of their reserve backing strategy while earning Treasury-based yield.

The second fund, BlackRock Select Treasury Based Liquidity Fund, is designed to issue tokenized shares of BlackRock’s existing $6.9 billion Treasury liquidity fund on Ethereum.

BlackRock’s tokenization track record

The firm launched BUIDL, its tokenized fund focused on US Treasuries, in 2024. That product has since accumulated $2.5 billion in assets, making it one of the most successful tokenized financial products ever created.

CEO Larry Fink has predicted that all financial assets will eventually be tokenized. Robbie Mitchnick, BlackRock’s Head of Crypto, has outlined plans for expanding tokenization utility over the next 24 to 36 months, with a focus on resolving liquidity and regulatory challenges that still make institutional investors nervous about on-chain products.

What this means for investors

Franklin Templeton, WisdomTree, and others have tokenized fund products, but none have matched BlackRock’s scale, with BUIDL’s $2.5 billion in assets giving the firm a significant head start alongside its existing relationships with both crypto firms and regulators.

If BlackRock successfully becomes the reserve manager of choice for major stablecoin issuers, one firm’s operational or regulatory issues could ripple across the entire stablecoin ecosystem.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.