BlackRock rolls out two on-chain funds aimed at stablecoin reserves
Tech & Launches ·
The asset manager introduced tokenized money market vehicles built to meet reserve requirements for U.S. payment stablecoin issuers operating under the GENIUS Act.
BlackRock has brought two new tokenized products onto public blockchains, both designed with an eye toward serving as compliant reserve holdings for regulated stablecoin issuers. One is an OnChain Shares class tied to the BlackRock Select Treasury Based Liquidity Fund, deployed on Ethereum. The other, called the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, is built to operate across several blockchain networks and to reinvest dividends on a daily basis, according to wublockchain.xyz.
The design of both vehicles is directly tied to U.S. stablecoin regulation. Under the GENIUS Act, permitted payment stablecoin issuers must back their tokens with qualifying reserve assets, and BlackRock has structured these two products so that the assets they hold are intended to satisfy that standard. The daily reinvestment feature on the multi-chain vehicle suggests an effort to keep reserve yield mechanics running continuously rather than on a periodic settlement cycle, though the specifics of how reinvestment interacts with each supported chain have not been detailed.
The launch extends BlackRock's existing footprint in stablecoin infrastructure. The firm already manages roughly $60 billion in reserves for Circle, giving it an established role as a custodian of stablecoin-backing assets even before these tokenized fund structures existed. Placing shares of a Treasury-based liquidity fund directly on Ethereum, and building a separate vehicle meant to work across multiple chains, indicates an attempt to make that reserve-management function operate natively on-chain rather than purely off-chain.
A separate account covering the same development corroborates the core claim of the launch, describing BlackRock's move as introducing blockchain-based money market offerings positioned to qualify as eligible reserve assets for stablecoin issuers under the same regulatory framework, per a post referencing the launch.
What remains unclear is which stablecoin issuers, if any, have committed to using these specific vehicles as reserve backing, and how quickly other blockchains beyond Ethereum will see the Daily Reinvestment vehicle actually go live. Also unresolved is whether regulators overseeing GENIUS Act compliance have formally confirmed that these fund structures meet the reserve-asset criteria, or whether that determination is still pending. How this on-chain reserve infrastructure interacts with BlackRock's existing $60 billion Circle reserve arrangement is another open question.