BlackRock proposes two crypto currency market funds to increase blockchain assets

BlackRock, the world's largest asset management company with $14 trillion in assets under management, has filed two applications with the SEC to expand its cryptographic fund portfolio, marking the strongest step of institutions into the financial sector.

5/12/20264 min read

Separate existing components into tokens

This move significantly boosts BlackRock's tokenization strategy beyond the pioneering BUIDL fund, which was launched in March 2024 and currently manages more than $2.5 billion on eight blockchains. Together, the proposed funds will help BlackRock attract institutional investment capital across many on-chain use cases: from providing profitable reserves to stablecoin issuers to providing investors specializing in cryptocurrencies with access to treasury bonds without leaving the blockchain ecosystem.

"BlackRock is positioning these products to align with upcoming regulatory designs, including provisions that may regulate how stablecoin issuers maintain reserves," industry analysts commented. The moment immediately after the GENIUS Act was passed, establishing federal regulations on stablecoins, showing a strategic fit with emerging regulatory frameworks that would require stablecoin issuers to support tokens with high-quality liquid assets such as treasury bonds.

Fund No. 1: BlackRock Selective Treasury-Based Liquidity Fund (BSTBL) - Crypto Shares

A digital stake of BlackRock's existing $6.1 billion Selective Treasury-Based Liquidity Fund, investing in cash, US treasury bills, bonds and other short-term securities with a maturity of 93 days or less.

This new type of crypto stake is traded on Ethereum along with existing traditional shares.
BNY Mellon Investment Servicing acts as a transfer agent, maintaining an official ownership record on Ethereum by using the ERC-20 token standard.
The basic portfolio is like traditional shares (extremely cautious Treasury instruments).
The average maturity in dollars is maintained at 60 days or less.
Designed for institutional customers and global investors.

This is not a new fund, but the inclusion of an existing $6.1 billion institutional Treasury fund, which has been verified over time, on the blockchain. Investors get the same level of exposure and risk profile as traditional shares, but with payment on blockchain, 24/7 transferability and the ability to combine DeFi.

Incorporate investors, family asset management offices and corporate financial management departments are familiar with money market funds but are looking for the benefits of blockchain: instant payments, transparent holdings, programmable workflows and the ability to use risk from the treasury as collateral for DeFi.

Fund 2: BlackRock's Daily Reinvestment Stablecoin Reserve Fund (BRSRV)

A brand new Treasury money market fund, built on the blockchain platform, is designed exclusively for stablecoin issuers and institutional investment capital specializing in cryptocurrencies.

Invest in cash, short-term U.S. Treasury securities (maturity of 93 days or less) and overnight buyback agreements secured by the Treasury.
Issuing "Shares On the Chain" through a governance framework with access connected to many public blockchains (not only Ethereum).
Securities Transfer Agent LLC (Securitize Transfer Agent LLC) acts as the official transfer agent.
Minimum investment of 3 million dollars, limited access for institutional investors.
Designed to qualify as a valid reserve asset under the stablecoin provisions of the GENIUS Act.

Specially built for the stablecoin ecosystem. Unlike BSTBL (an existing fund being tokenized), this is a work built from scratch, optimized for cryptocurrency use cases, especially acting as a profitable reserve fund for stablecoin issuers, who must secure tokens with high-quality liquidity assets.

Stablecoin issuers (Circle, Tether, PayPal, etc.) need regulatory-compliant reserve assets; cryptocurrency exchanges and platforms are holding large amounts of stablecoins without making a profit; institutional cryptocurrency funds are looking for opportunities to invest in treasury without converting to fiat currency; DeFi protocols require transparent collateral, recorded on the chain.

Future scenarios

The SEC approved both funds, the launch process went smoothly, the acceptance of the organizations accelerated. BRSRV accounts for 30-50% of the stablecoin reserve market (50-100 billion USD of managed assets), BSTBL attracts significant capital from institutions specializing in cryptocurrencies (5-15 billion USD of managed assets). BlackRock affirms its position as the leading provider of encrypted treasury, creating a sustainable competitive advantage. Key indicators: SEC approval within 6-9 months, rapid growth of managed assets after launch, announcement of major stablecoin partnerships, accelerated DeFi integration process.

SEC approves with conditions or delay, gradual acceptance of organizations, moderate asset growth is managed. BRSRV reached 10-30 billion USD of managed assets within 2-3 years, BSTBL increased by 2-5 billion USD. BlackRock maintains its leading position but faces increasing competition, the market is fragmented among many suppliers. Key indicators: The process of reviewing the regulation is prolonged, the cautious acceptance of organizations, competitors gain a foothold, competition for fees appears.

The SEC raised concerns about requesting significant amendments or delaying approval indefinitely. Other jurisdictions impose restrictions that complicate the multi-chain strategy. The product launch is delayed from 12 to 24 months, giving competitors time to establish a position. BlackRock still maintains its presence but loses the pioneer advantage. Key signs: Prolonged opposition or consideration from the SEC, regulatory investigations, pre-approved competitor products, a decrease in market interest.

Evaluation and conclusion

BlackRock's cryptographic dual bond fund proposal is not merely a product expansion, but also signals that the world's largest asset manager sees on-chain finance as the focus of future financial infrastructure, rather than a sideline experiment.

The sophistication of the strategy is obvious: BSTBL targets traditional institutional investors who are looking for the benefits of blockchain while maintaining familiar products; BRSRV is specially built for institutional investment capital specializing in cryptocurrencies and stablecoin infrastructure. Together, they position BlackRock across the entire scope, from traditional finance exploring blockchain to investment capital specializing in cryptocurrencies that need institutional-level infrastructure.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrencies. This is not financial or investment advice at all. Every investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The opinion in the article does not represent the official position of the platform. We recommend that readers do their own research and consult experts before making any investment decisions.

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