BlackRock launches onchain money market funds

BlackRock has introduced two tokenized cash-management products designed for stablecoin reserve operators and digital-asset firms seeking onchain access to U.S. Treasury-backed liquidity. The OnChain Shares of the BlackRock Select Treasury Based Liquidity Fund, known as BSTBL, and the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, or BRSRV, extend the asset manager’s tokenized-fund lineup beyond BUIDL, its $2.6 billion blockchain-based Treasury fund.

Both products will invest mainly in cash, short-dated U.S. Treasury securities and overnight repurchase agreements backed by U.S. Treasuries, according to BlackRock’s announcement. Those holdings follow the conservative portfolio construction commonly used in money market products, while the funds’ ownership and transfer mechanisms are designed for blockchain networks.

The launch targets a growing pool of stablecoin-related balances that need regulated, liquid reserve assets rather than unproductive cash. It also gives eligible institutions more ways to move Treasury exposure across digital-asset infrastructure without changing the underlying portfolio into a higher-risk crypto strategy.

BSTBL is an onchain share class of BlackRock’s existing Select Treasury Based Liquidity Fund. The shares will be issued on Ethereum and can be transferred between approved digital wallets, subject to applicable regulatory requirements and fund restrictions.

BNY Mellon will serve as both transfer agent and tokenization provider for BSTBL. The bank already performs those roles for BlackRock USD Institutional Digital Liquidity Fund, better known as BUIDL, linking the new Ethereum share class to an operating model BlackRock has used since its first tokenized fund was launched in March 2024.

A transfer agent maintains the official record of fund ownership and processes transactions such as subscriptions and redemptions. In an onchain structure, that traditional fund-administration role is connected to blockchain tokens representing the shares, rather than being replaced by an open, permissionless token system.

That distinction places BSTBL closer to institutional fund infrastructure than to freely tradable cryptocurrencies. Wallet-to-wallet movement may provide faster operational settlement between eligible participants, but access remains controlled through approved wallets and the fund’s compliance framework.

BRSRV takes a different approach. BlackRock described it as a new tokenized fund with dividends reinvested daily and access across multiple blockchains. Securitize will act as the fund’s transfer agent and tokenization provider.

Daily reinvestment is particularly relevant to stablecoin reserve management, where issuers and other large holders often aim to keep collateral in short-duration assets while retaining predictable liquidity. Reinvesting income within the fund could simplify the handling of yield generated by Treasury bills and overnight repo transactions, rather than requiring periodic cash distributions to be processed separately.

Multi-blockchain access could also make BRSRV more adaptable for firms operating across separate onchain environments. Stablecoin activity, collateral movements and decentralized-finance settlement do not take place solely on Ethereum, and a fund designed for more than one network may reduce the need for institutions to concentrate all tokenized cash operations on a single chain.

BlackRock did not position the products as replacements for stablecoins themselves. They are Treasury-backed fund vehicles, while stablecoins are generally designed to maintain a fixed value and function as payment or settlement tokens. The products instead offer a potential destination for reserve capital and other institutional balances that need to remain in highly liquid, dollar-linked instruments.

BUIDL has become BlackRock’s central example of how tokenized fund shares can be used in digital-asset markets. The fund is designed to maintain a $1 share price while generating income from cash, U.S. Treasury bills and repurchase agreements. RWA.xyz, a platform that tracks tokenized real-world assets, lists BUIDL with more than $2.6 billion in assets.

The fund’s scale has given BlackRock a meaningful foothold in a market once dominated by smaller crypto-native issuers. It has also been used as collateral in certain digital-asset trading and lending arrangements, showing how a regulated money market product can be incorporated into blockchain-based financial plumbing.

RWA.xyz data show the tokenized-asset market rose from roughly $2 billion when BUIDL launched in March 2024 to more than $37 billion. Tokenized U.S. Treasuries grew from about $721 million to $16 billion over the same period, according to the platform.

Those figures reflect demand for onchain versions of familiar short-term instruments rather than a wholesale shift away from conventional funds. The underlying assets remain government securities and cash-market transactions; the change is in how ownership can be recorded, transferred and integrated with digital settlement systems.

The products arrive after the GENIUS Act established a U.S. federal framework for payment stablecoins and their reserve practices. The law has increased attention on the assets held behind dollar-pegged tokens, particularly cash and short-term Treasury instruments that can support redemptions while generating income for issuers.

Morgan Stanley, State Street and Fidelity have also introduced tokenized fund products aimed at stablecoin reserves or digital cash management. Their entry points to competition over an institutional business that sits between conventional money funds and blockchain settlement networks.

For BlackRock, the two new vehicles divide that opportunity into separate use cases. BSTBL gives an established Treasury liquidity fund an Ethereum-based share class and a familiar administrator in BNY Mellon. BRSRV, built with Securitize, is structured around daily reinvestment and multi-chain availability for firms whose operations may span several digital networks.

The result is a more specialized menu for institutions managing tokenized dollars and related collateral: one product adapts an existing money market fund for Ethereum transfers, while the other is designed from the outset around blockchain-based reserve operations.