KETJU Research

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tokenized-rwa

BlackRock Select Treasury Based Liquidity Fund, OnChain Shares (DOLXX), BSTBL token

Favorable research; shelf not set
Research assessment
favorable with conditions
Firm shelf
research only
Model-client eligibility
unresolved
Selection
not considered
Action and amount
Not set by research
Reviewed
2026-09-23 · v1
Next review
2026-12-22
Research basis
Individual research
Chains
Ethereum · sovereign
Symbols
BSTBL
Eligibility file
What the holder owns and who may hold it

Research, firm shelf, model-client eligibility, and advisor selection are recorded separately. The scheduled date is the outside bound; new evidence can reopen the file sooner.

BSTBL is one share class of an old, large BlackRock money fund, put on Ethereum. The fund is BlackRock Select Treasury Based Liquidity Fund, formerly BlackRock Liquid Federal Trust Fund, a government money market fund in the BlackRock Liquidity Funds trust. It held $6.47 billion on 22 September 2026. It buys only Treasuries of 93 days or less and overnight Treasury repo, and BlackRock says that makes its shares eligible reserves for stablecoin issuers under the GENIUS Act. On 31 July BlackRock added a class called OnChain Shares, ticker DOLXX. That class held $11.9 million on 22 September, all of it in one wallet. BSTBL launched the same week as BRSRV, but it is a separate program. BRSRV is a new fund in a different trust, and Securitize keeps its record. BNY Mellon Investment Servicing keeps the record for BSTBL, and the prospectus says the chain records, joined to BNY’s list of who owns each wallet, “will constitute the official shareholder register.” So the token is the share. The terms are those of an institutional money fund: U.S. residents, “$3 million for institutions” to open, orders by 5:00 p.m. Eastern, tokens burned and dollars wired the same day, dividends each month as new tokens. We read the research as favorable with conditions and leave the model client question open. The fund is a registered 2a-7 fund with a long record and the best wrapper a tokenized dollar fund can have. The conditions are three. BlackRock does not publish the contract address; we tie it to the fund by its on-chain name and by a supply that equals BlackRock’s published class size. One ordinary key owns the token and its upgrade path, and that key alone can mint, burn any holder’s tokens, freeze a wallet, pause every transfer, and replace the code. And the minimum is written for institutions, so the documents do not show a door for a household.

The research file

What the holder owns

One BSTBL token is one OnChain Share of BlackRock Select Treasury Based Liquidity Fund, a series of BlackRock Liquidity Funds (1940 Act file 811-2354) managed by BlackRock Advisors under Rule 2a-7. The OnChain class shares the fund’s portfolio with nine older classes sold the ordinary way, such as Institutional Shares (TFFXX). The fund “invests 100% of its total assets in cash, U.S. Treasury bills, notes and other obligations” of the Treasury maturing in 93 days or less, and overnight repo backed by them. On 22 September BlackRock showed a weighted average maturity of 20 days, a 7-day SEC yield of 3.69 percent, 100 percent weekly liquid assets, and ratings of AAAm, AAAmmf, and Aaa-mf. The management fee is 0.20 percent; BlackRock caps total expenses at 0.17 percent through 30 June 2028. The CUSIP of the OnChain class is 09250C572. There is no deposit insurance and no SIPC cover.

Why stablecoin issuers

A supplement dated 31 July adds a “Stablecoin Regulatory Risk” to the older classes’ prospectuses, and the OnChain prospectus carries it too: the fund “intends to operate such that its shares will be ‘eligible reserve assets’ for payment stablecoin issuers” under the GENIUS Act of July 2025. The same supplement removed other investment companies from what the fund may buy. The prospectus warns that if the rules exclude money fund shares, or the OCC caps how much of an issuer’s reserves may sit in one product, stablecoin holders “could be required to redeem their holdings,” and large redemptions could hurt the fund. It also expects many record owners to be trust accounts at crypto banks whose customers are stablecoin issuers, and says BlackRock may pay those banks from its own money.

How the record works

BNY Mellon Investment Servicing (US) Inc., an SEC-registered transfer agent (file 084-01761), “maintains the official record of ownership of OnChain Shares on a public blockchain,” using “a permissioned system that operates in connection with a public, permissionless blockchain.” The shares are ERC-20 tokens on Ethereum only. An investor fills in an account application, gives BNY a wallet address, and is told when the wallet is “whitelisted”; BNY “retains the discretion to support only certain digital asset custodian wallets.” Orders go through BlackRock’s Cachematrix portal or the Liquidity Service Center by 5:00 p.m. Eastern and must be funded in federal funds by 6:45 p.m.; the tokens are minted that day and locked for transfer until the next business day. The chain shows the pattern. The token was created on 4 August 2026, and from 6 August the owner key minted round lots of $390,000 to $2.5 million to one wallet at about 22:46 UTC on business days, through a function named mintLockToken. On 1 September it minted 12,847.27 tokens, the August dividend reinvested as the prospectus describes. Supply on 23 September was 11,902,847.27, the $11.9 million class size BlackRock reported the day before. No token has yet been redeemed.

How money gets out

The holder moves tokens to the fund’s Redemption Wallet by 5:00 p.m. Eastern on a business day; BNY burns them that day and the fund “typically” wires federal funds the same day, or the next day the custodian is open. A transfer counts only once it is final on chain, so the prospectus tells holders to send early. A holder who cannot redeem on chain may call, and BNY then burns the tokens in the wallet. The prospectus says redemptions do not depend on any chain working. There is no listing: peer-to-peer transfers between whitelisted wallets are allowed at any hour, but they “do not constitute a public trading market,” and the shares will not trade on an exchange or an ATS. The fund may redeem an account worth less than $100,000 on 60 days’ notice, and may stop peer-to-peer transfers if it suspends redemptions to liquidate.

Who may hold

The class is “only registered for sale in the United States and certain of its territories,” and the fund “generally does not accept investments from non-U.S. residents.” The minimum is “$3 million for institutions,” which the fund’s officers may reduce or waive, with no minimum after that. That wording is narrower than BRSRV’s, which spells out rules for natural persons; the BSTBL prospectus names no rule for individuals at all and no investor test. It publishes no list of states. A household adviser reading it would find nothing that bars a client and nothing built for one.

Who controls the tokens

The token is an upgradeable proxy; the prospectus says the contracts are “designed, deployed, and maintained by the Transfer Agent,” and the verified code is named FundBNRV1. The reader found an allowlist, a freeze, a pause, a burn that can take tokens from any holder, a mint, and an upgrade path. Every one of those functions answers to the owner, 0x0fc1…5cea, an ordinary address with no code that also deployed the token, and that same address owns the proxy admin contract (0x628d…3909) that can swap the code. One private key therefore holds every power over the fund’s on-chain register. The prospectus describes the powers without naming the key: the contracts support the “ability to claw back Tokens under certain circumstances,” the fund may “freeze shareholder wallets” for money laundering and sanctions reasons, and on a lost key BNY may freeze the tokens and reissue them. Because the chain is the register, a burn by that key changes who owns shares, not a copy of the record.

Comparison

Against BRSRV, BSTBL puts the chain register in a large, long-running fund rather than a new one, and swaps Securitize for BNY. The minimums match at $3 million, the cutoffs match at 5:00 p.m., and both burn and wire the same day. BRSRV pays dividends daily as new tokens and runs on Ethereum, Solana, and Tempo; BSTBL pays monthly and runs on Ethereum alone. On control, BRSRV splits the token owner from the wallet registrar, two keys; BSTBL puts every power in one. Against an ordinary government money fund held at a custodian, BSTBL adds whitelisted transfers at any hour and adds the risk that a key, a contract, or the chain fails.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The most administered layer sets the position’s effective control grade; that is a control description, not a quality or suitability score.

ChainVerdictGradeControl constraint
EthereumFavorable sovereign No sequencer, no upgrade key, no operator who can be compelled — rule changes require social consensus.
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