BlackRock, one of the world's largest asset management firms, is introducing a new money market fund that complies with the GENIUS Act, designed to streamline reserve holding processes for stablecoin issuers. The fund, set to launch on Thursday, aims to provide US-based stablecoin projects with a regulatory-compliant solution for managing reserves, enhancing transparency, auditability, and asset security.
Under the GENIUS Act, which was signed into US law in July 2025, stablecoins must be backed 1:1 with cash or short-term Treasuries and undergo monthly third-party audits. This initiative is expected to benefit major stablecoin issuers such as Circle (USDC), PayPal (PYUSD), and Tether (USDT), offering them institutional-grade custody options.
The stablecoin market is valued at $266 billion, with issuers holding over $120 billion in Treasuries, underscoring the significance of this development. Analysts highlight that BlackRock's move could boost institutional confidence and accelerate regulatory compliance, further integrating traditional finance into the digital asset ecosystem.
