BlackRock launches tokenized money market funds for stablecoin reserves
The asset manager introduced two blockchain-based money market funds designed to qualify as stablecoin reserve assets under the US GENIUS Act.
BlackRock has launched two blockchain-based money market funds specifically structured to serve as reserve assets for stablecoin issuers. The world's largest asset manager designed the funds to meet the reserve requirements outlined in the United States GENIUS Act, the proposed federal framework governing stablecoin regulation.
The GENIUS Act, currently advancing through the US legislative process, sets out specific criteria for assets that stablecoin issuers may hold as backing for their tokens. Qualifying reserve assets must be highly liquid, low-risk instruments — categories that money market funds have traditionally occupied. BlackRock's decision to tokenize these products places them directly in line with the anticipated regulatory framework, allowing stablecoin operators to potentially hold them on-chain as compliant collateral.
The move signals growing institutional interest in bridging traditional finance infrastructure with blockchain-native systems. By tokenizing money market fund shares, BlackRock enables faster settlement, transparent on-chain verification, and seamless integration with decentralized platforms. For the stablecoin sector, access to regulated, tokenized reserve instruments could strengthen confidence in asset backing and reduce reliance on less transparent reserve structures that have drawn scrutiny in the past.
Observers will be watching whether other major asset managers follow BlackRock's approach and whether the GENIUS Act advances far enough through Congress to formally validate these instruments as qualifying reserves. The adoption rate among stablecoin issuers will also serve as a key indicator of demand for tokenized institutional products.
Source: Cointelegraph
