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BlackRock to Launch GENIUS Act-Compliant Money Market Fund for Stablecoin Reserves
Get ready for another crypto meets TradFi handshake: BlackRock is said to be unveiling a GENIUS Act-compliant money market fund this Thursday, aimed explicitly at helping stablecoin issuers simplify and legitimize their reserve custody. Think of it as regulatory infrastructure for the behind-the-scenes plumbing of crypto.
According to recent reports, the new fund will cater to stablecoin issuers by offering a regulated, compliant custody vehicle for their 1:1 fiat backing mandates under the GENIUS Act. By design, it’s tailored to hold high-quality short-term assets cash equivalents, U.S. Treasuries to satisfy legal backing, audit, and risk requirements.
This initiative positions BlackRock as an institutional bridge between compliance pressure on stablecoin issuers and the need for safe, scalable reserve infrastructure.
Why You Should Care: It’s Not Just Another Fund
Regulatory alignment
The GENIUS Act, passed in July 2025, mandates stablecoin issuers maintain full fiat backing, monthly audits, and transparent custody practices. This fund is BlackRock’s answer to the compliance headache many issuers now face.
The GENIUS Act, passed in July 2025, mandates stablecoin issuers maintain full fiat backing, monthly audits, and transparent custody practices. This fund is BlackRock’s answer to the compliance headache many issuers now face.
Institutionalization of stablecoins
By offering a regulated reserve option, BlackRock is nudging stablecoin infrastructure into a more trustworthy realm one where issuers can offload custody complexity and focus on payments, growth, or issuance.
Liquidity & settleability
Stablecoin issuers often juggle high withdrawal volumes. A well-run money market fund offers liquidity buffers, transparent redemption paths, and counterparty reliability critical when redemptions spike.
Competitive differentiation
This could create a moat: issuers using BlackRock’s facility may benefit from scale, oversight, and brand trust that many smaller custodians lack. It’s one thing to hold reserves it’s another to hold them under institutional scrutiny.
Interestingly, BlackRock is no stranger to tokenization: its BUIDL tokenized money market fund already operates as a digital on-chain instrument. This new fund extends that bridge into compliance for stablecoin reserves.
What we know:
BlackRock will debut the fund this Thursday, per multiple crypto news outlets.
It is explicitly described as GENIUS Act-compliant, meaning it’s built to satisfy the new stablecoin law’s custody and reserve rules.
The fund is designed to simplify reserve custody for stablecoin issuers, offering a safer, regulated option for their backing assets.
What’s unclear:
How much capital will be allowed or required to participate
Fee structure, governance design, and redemption mechanisms
Whether the fund will operate as a tokenized instrument (like BUIDL) or in a more traditional wrapper
Which stablecoin issuers will adopt it first, and whether it becomes industry standard
If adoption is strong, this could be a pivotal moment for stablecoin infrastructure moving beyond compliance fixes into scalable, trusted backbone services.
Fee structure, governance design, and redemption mechanisms
Whether the fund will operate as a tokenized instrument (like BUIDL) or in a more traditional wrapper
Which stablecoin issuers will adopt it first, and whether it becomes industry standard
If adoption is strong, this could be a pivotal moment for stablecoin infrastructure moving beyond compliance fixes into scalable, trusted backbone services.
FAQs
Q: What is a “GENIUS Act-compliant money market fund”?It’s a money market fund structured to meet the custody, audit, and reserve transparency requirements mandated by the GENIUS Act for stablecoin issuers.
Q: Why do stablecoin issuers need such a fund?
They now must back tokens 1:1 and undergo monthly audits. Managing safe, liquid reserves in compliance is operationally complex this fund simplifies that.
Q: Is BlackRock new to tokenized funds?
No BlackRock already operates BUIDL, a tokenized money market fund on Ethereum.
Q: How is this different from regular money market funds?
This will be tailored for stablecoin reserve custody, subject to stricter rules, audit transparency, and compliance with the GENIUS Act.
Q: When will this fund debut?
Reports indicate the launch is scheduled for Thursday.
Q: Will all stablecoin issuers use it?
Not necessarily. Some may prefer in-house or custodial alternatives, but major issuers facing regulatory scrutiny may adopt it quickly.
Tags
Crypto Regulations