Blackrock Eyes $6.1B Fund Tokenization

The world’s largest asset manager has submitted paperwork to U.S. regulators to launch a digital share class tied to its roughly $6.1 billion Blackrock Select Treasury Based Liquidity Fund (BSTBL), according to a Bloomberg report. The fund invests in cash, U.S. Treasury bills, notes, and other short-duration securities with maturities of 93 days or less. The new tokenized shares would trade on Ethereum alongside the fund’s existing traditional share classes.

The product is aimed squarely at stablecoin investors, a fast-growing segment that holds significant capital in digital dollars but earns little or no yield on those holdings. By packaging a regulated money-market instrument in a blockchain-native format, Blackrock is positioning itself to capture liquidity that currently sits dormant inside stablecoin wallets across the Ethereum ecosystem.

BUIDL has since grown to more than $2.50 billion in assets under management, running across eight blockchain networks, including Ethereum, BNB, Solana, Polygon, Avalanche, Arbitrum, Optimism, and Aptos. Moreover, tokenized U.S. treasuries have been approaching $14 billion in total market size as Blackrock and Circle have led institutional adoption of onchain fixed income.

Extending Reach and Infrastructure

The new BSTBL tokenization would represent a second, distinct product, extending Blackrock’s onchain reach deeper into the short-duration, cash-equivalent segment of institutional finance. The firm is specifically targeting investors who park capital in stablecoins rather than traditional bank accounts, a cohort that has grown alongside the broader stablecoin market, now valued at over $320 billion globally.

The timing aligns with a broader institutional push into blockchain-native infrastructure, as Blackrock recently partnered with Standard Chartered to power OKX’s tokenized treasury collateral system, allowing tokenized real-world assets to function as active margin and collateral in live trading environments (a model the BSTBL tokenization would extend to a significantly larger pool of capital).

Blackrock has not confirmed a launch date, and the product remains in the regulatory registration phase. SEC approval is required before tokenized shares can be issued to investors.