BlackRock is expanding the intersection of traditional finance and on-chain finance by pursuing the launch of a money market fund (MMF) targeting stablecoin holders.
According to Bloomberg, BlackRock is preparing two money market funds (MMFs) targeting investors who hold cash in stablecoins instead of bank accounts. The new products are named BRSRV and BSTBL. Among these, BRSRV is known to be a product directly aimed at stablecoin holders.
A notable point is that fund shares are issued in the form of blockchain-based tokens. Stock tokens for BRSRV are scheduled to be issued on multiple blockchains, while those for BSTBL will be issued on the Ethereum chain. This is an attempt to go beyond simply accepting stablecoins as a means of payment and to circulate the MMF itself as an on-chain asset.
This move aligns with BlackRock's tokenization strategy. BlackRock CEO Larry Fink has consistently emphasized that "all financial assets will eventually be tokenized." Indeed, BUIDL, a tokenized fund launched by BlackRock in 2024, currently manages approximately $2.5 billion in assets and has established itself as a leading product in the institutional RWA market.
This plan to launch an MMF demonstrates that the next axis of competition in the stablecoin market is shifting from mere issuance volume to 'income-generating cash management.' While stablecoins excel in payments and remittances, they often do not generate interest simply by being held. In contrast, MMFs pursue stable returns based on short-term government bonds and cash-like assets. BlackRock appears to be exploiting this gap to connect stablecoin holders with institutional cash management products.
The impact on the market is also significant. If stablecoins take on the role of on-chain dollars and MMF tokens serve as the means of managing those dollars, the flow of funds in the digital asset market could become much closer to institutional finance. In particular, for institutional investors, this opens the way to manage bank deposits, stablecoins, and tokenized government bonds and MMFs within a single liquidity management framework.
BlackRock's moves signal that tokenized finance has moved beyond the experimental stage and entered a phase of product competition. As BlackRock, which entered the digital asset market with a Bitcoin ETF, is now targeting the cash equivalents of stablecoin holders, the competition among global asset management firms for dominance in on-chain finance is expected to intensify.
