BlackRock Launches Two Tokenized Funds Ahead of Clarity Act

Key Takeaways

• BlackRock rolled out two tokenized money market funds on Monday.
• It included a tokenized share class of its Treasury-Based Liquidity Fund (BSTBL) on Ethereum (ETH) and a new BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV) for stablecoin issuers.
• The new BRSRV fund will be an eligible asset under the GENIUS Act, giving the company more say in the stablecoin market.
• The Clarity Act is still not on the calendar, while prediction markets put the odds of its passage this year at about 30%.

On Monday, BlackRock, the world’s largest asset manager, expanded its tokenized cash platform. The firm introduced two new tokenized money market products.

The BlackRock Select Treasury-Based Liquidity Fund (BSTBL) now has a tokenized share class issued on Ethereum, with BNY Mellon (BNY) as transfer agent and tokenization provider, reported CoinDesk.

In addition, the asset manager has also launched a new BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV) with daily dividend reinvestment and access across multiple blockchains.

According to the asset manager, both funds qualify as eligible reserve assets for permitted U.S. payment stablecoin issuers under the GENIUS Act.

Jon Steel, Global Head of Product and Platform for BlackRock's Cash Management business, said, “As demand grows for high-quality reserve assets to support stablecoins and other tokenized financial products, these funds provide clients with additional choice in how they access and use money market fund investment solutions across traditional and digital markets.”

The move deepens BlackRock’s push into tokenized finance: blockchain-based representations of traditional financial assets, such as bonds, funds, and equities. Advocates of the move also say that the technology can speed up settlement and bring transparency.

From BUIDL To BSTBL

BlackRock launched its first tokenized money-market fund, BUIDL, with Securitize (SECZ) in 2024. Since then, the fund has grown to roughly $2.5 billion in assets. It is increasingly used across the crypto markets as collateral for borrowing and leveraged trading.

During its Q2 Earnings Call last month, BlackRock first disclosed the products. Its Chief Financial Officer (CFO) Martin Small, said, “The filings were about bringing BlackRock's core cash management capabilities to where digital assets clients are already operating.”

He highlighted the fact that the financial giant wanted to be the stablecoin reserve manager of choice in the industry and said, “We already manage $60 billion of reserves for Circle, representing about a quarter of the $300 billion stablecoin market. We see lots of growth ahead in stablecoins, and we want to be the reserve manager of choice.”

U.S. money market funds hold more than $8.4 trillion in assets. While BlackRock’s Cash Management Group manages nearly $1.073 trillion for corporations, banks, insurers, foundations, and public institutions.

BlackRock's latest move reflects its growing interest in tokenizing real-world assets. Its CEO, Larry Fink, has repeatedly said that tokenization could make financial markets more efficient.

According to RWA.xyz, the tokenized real-world asset market has surpassed $30 billion.

Clarity Act Faces Uncertainty

While the GENIUS Act gave stablecoin issuers and reserve managers a legal framework, the Clarity Act still faces uncertainty. The bill still needs 60 votes to clear the Senate floor, which seems a distant reality with the August recess approaching.

According to on-chain analyst TedPillows, the Clarity Act was “not on the Senate’s floor schedule.” If the leadership waits until Wednesday to file cloture, the earliest vote would be Friday. This leaves no time to debate before the August 10 recess.

GSR Head of Product Andy Baehr said on Schwab Network that prediction markets were pricing only about a 30% chance of the CLARITY Act becoming law this year. He also added that it is unlikely to be done in August, but there might be a window in September.

On Monday, Treasury Secretary Scott Bessent confirmed that Tyler Williams, a key architect of U.S. crypto policy, stepped down as uncertainty grows around the Clarity Act. The announcement came at a time when the federal government is still working toward a comprehensive market structure framework.

If passed, the Clarity Act could become the most significant crypto legislation in the U.S. It would establish clear rules for digital assets and define the roles of the SEC and CFTC.

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