BlackRock doubles down on tokenization with new stablecoin reserve funds

BlackRock plans to launch two tokenized money market funds for stablecoin issuers as CEO Larry Fink doubles down on tokenization.

The first proposed fund, called the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle is a Treasury-backed money market fund built for blockchain-based ownership and transfers. It will invest in ultra-short-term US government securities and repo agreements while issuing onchain shares held through approved crypto wallets.

Designed for the stablecoin ecosystem, BlackRock intends the vehicle to qualify as an eligible reserve asset under the GENIUS Act, the US law establishing a framework for payment stablecoins. Stablecoin issuers and crypto-native institutions could then use the fund as part of their reserve backing strategy while earning Treasury-based yield.

The second fund, BlackRock Select Treasury Based Liquidity Fund, is designed to issue tokenized shares of BlackRock’s existing $6.9 billion Treasury liquidity fund on Ethereum.

Market size

Tokenized real-world assets have grown roughly 410% since early 2025, exceeding $30 billion according to data from rwa.xyz. The most dominant sector remains Tokenized US Treasuries, with BlackRock’s BUIDL holding $2.4 billion of the total.

The global tokenization market was valued at approximately $4 billion in 2025 and is forecast to reach $16 billion by 2034, expanding at a CAGR of 16.4% from 2026 to 2034, according to Fortune Business Insights’ April 2026 report.

The industry is benefiting from the rapid adoption of digital services and the increasing volume of electronic transactions worldwide. Businesses are processing larger amounts of sensitive financial and personal data than ever before, creating stronger demand for tokenization technologies that can reduce exposure to fraud, cyberattacks, and unauthorized access.

A growing emphasis on payment security and regulatory compliance is also contributing to market expansion.

Following the pandemic-driven surge in digital payments and e-commerce activity, organizations have increasingly invested in secure payment infrastructure and data protection systems. This trend is expected to continue as consumers and enterprises prioritize safe digital transaction environments across industries.

Competition

JPMorgan rolled out its own tokenized money-market fund, MONY, in December 2025. Coinbase recently launched a tokenized credit vehicle called CUSHY that competes directly with BUIDL, built around on-chain yield sources including public credit, private lending, and structural alpha.

Nate Geraci, president of ETF Store, noted that investors should expect “much more of this from top asset managers.”