Overview
- BlackRock converted its Liquid Federal Trust Fund into the BlackRock Select Treasury Based Liquidity Fund to serve as an approved reserve vehicle for U.S. stablecoin issuers.
- The portfolio is limited to short-term U.S. Treasuries and overnight repurchase agreements, with shorter maturities and the removal of agency holdings to align with the new law.
- Operational updates include trading hours extended to 5:00 pm ET and later valuation times to better accommodate institutional workflows.
- The fund discloses a 0.27% net expense ratio after waivers through June 30, 2026, including a 0.21% management fee and a 0.10% shareholder servicing fee.
- BlackRock says the product positions it as a reserve manager of choice as stablecoin supply nears $300 billion and forecasts point to multi-trillion growth; the firm already manages part of Circle’s USDC reserves and its cash-management AUM exceeds $1 trillion.