#How is BlackRock Restructuring its Money Market Fund?
BlackRock is in the process of restructuring its money market fund specifically to meet the evolving requirements of stablecoin issuers. This transformation aligns with the guidelines set forth by the recent US GENIUS Act, a regulatory framework targeting the stablecoin market.
The revised BlackRock Select Treasury Based Liquidity Fund will now prioritize investments in short-term US Treasury securities and overnight repurchase agreements. This shift is significant as it provides a secure avenue for managing the reserves associated with stablecoins, crucial for issuers looking for reliable backing.
Understanding the implications of the GENIUS Act is essential for market participants. This legislation mandates that stablecoin issuers maintain full reserve backing with certain assets, including US Treasuries. To facilitate compliance, BlackRock's improved fund is designed to offer custody solutions that enable issuers to meet these legal obligations efficiently, minimizing operational hitches.
This restructuring represents a strategic response to the increasing appetite for regulated, yield-bearing reserve options amid expectations of substantial growth in stablecoin issuance.