BlackRock launches tokenized money-market funds on ETH, SOL

BlackRock launched two tokenized money-market funds, BSTBL on Ethereum and BRSRV on Solana. The funds are designed to serve as reserve assets for stablecoins and allow issuers to hold regulated on-chain reserves directly on those Layer 1 networks.

The funds are structured to operate like digital accounts on their respective blockchains. Stablecoin issuers can hold reserves in tokenized, money-market-style instruments instead of keeping those reserves in traditional bank deposits.

Holding reserves on Ethereum or Solana keeps liquidity native to each network. Native liquidity can simplify settlement, reduce frictions when moving capital on-chain and make it easier for issuers to deploy assets into decentralized finance protocols.

Stablecoins account for more than 14% of the cryptocurrency market, about $305 billion against a total market capitalization near $2.26 trillion. Total value locked in decentralized finance rose over 8% in the third quarter, and non-Bitcoin assets make up roughly 60% of exchange trading volume.

The SOL/ETH price ratio has traded below 0.05 since October and has spent months in a narrow range. The funds provide another mechanism for reserves to be held natively on Ethereum or Solana.

BlackRock presents the funds as regulated vehicles intended to meet institutional requirements for compliance and custody while using blockchain transaction rails.

The tokenized funds offer a route for institutional reserves to be held on-chain on Ethereum and Solana and for that capital to interact directly with each network’s liquidity pools and decentralized finance protocols.