BlackRock is pivoting towards stablecoins, redesigning a money market fund to cater specifically to U.S. stablecoin issuers under the GENIUS Act. The fund will prioritize liquidity for stablecoin issuers by shortening maturity on U.S. Treasuries and adding overnight repurchase agreements. Global head of product Jon Steel sees increased demand from stablecoin issuers for reserve management options.

BlackRock’s move into stablecoin reserves is expected to shake up the sector, especially given their recent milestone of surpassing $1 trillion in assets under management. The company’s spot Bitcoin and Ethereum ETFs are also dominating trading on Wall Street. This bold push into stablecoins follows BlackRock’s previous involvement in a $400 million funding round for USDC issuer Circle in 2022.

CEO Larry Fink announced BlackRock’s plan to develop technology to tokenize traditional assets, emphasizing the need to move quickly in this direction. Fink believes tokenizing assets, especially those with multiple intermediaries, is crucial for the future. This week has seen BlackRock’s deepening involvement and interest in the crypto space.

Read more at Yahoo Finance: BlackRock Expands Stablecoin Push With Fund to Manage Reserve Assets