BlackRock Launches GENIUS Act-Compliant Fund for Stablecoin Reserves
BlackRock has introduced a redesigned money market fund tailored to meet the stringent requirements of the GENIUS Act, which governs stablecoin reserves. The fund, holding only cash and short-term U.S. Treasuries, aims to serve as a custodial solution for major stablecoin issuers like Circle and Tether. Tokenization features enable faster settlements and real-time reserve adjustments, aligning with regulatory demands for transparency.
The move underscores Wall Street's deepening involvement in crypto infrastructure, as noted by influencer DustyBC. Monthly third-party audits and restrictions on risky collateral under the GENIUS Act are pushing stablecoin issuers toward institutional-grade custodians like BlackRock.