Invesco, an asset management firm with over $2.5 trillion in assets under management, has filed an application with the U.S. Securities and Exchange Commission to launch a tokenized fund targeting the stablecoin reserve market. According to the filing, the fund will hold cash and short-term U.S. Treasury securities to meet the reserve asset requirements of stablecoin issuers.
Invest in cash and short-term U.S. Treasuries
The proposed fund is named the Invesco Stablecoin Reserves Onchain Fund. The application documents indicate that the fund will primarily invest in cash and short-term U.S. Treasury securities, which are the most common assets held in current USD stablecoin reserves.
The report noted that the fund's asset structure aligns with the reserve requirements for payment stablecoins under the U.S. GENIUS Act, indicating that Invesco's move targets not only on-chain fund products but also meets the growing compliance demands of the stablecoin issuance market.
- Manager: Invesco
- Investment scope: Cash and short-term U.S. Treasury securities
- Target Market: Stablecoin Reserve Management
Stablecoin reserves become a new asset management business
As the issuance of stablecoins continues to expand, demand for managing reserve assets is rising. Stablecoins, typically pegged to $1, require backing by highly liquid assets such as cash and short-term government bonds, creating new business opportunities for traditional asset management firms.
Citigroup estimates that the stablecoin market size could grow as high as $4 trillion by 2030, up from approximately $300 billion today. If this trend continues, fund managers and asset management institutions responsible for holding reserve assets stand to benefit.
Continue Invesco's tokenization strategy
This application also continues Invesco’s push into on-chain assets this year. According to the report, Invesco previously took over the management of a $900 million tokenized U.S. Treasury fund from Superstate, becoming the first third-party asset manager to use Superstate’s FundOS blockchain fund platform.
Invesco's move also places it on the same playing field as traditional financial institutions such as BlackRock, Franklin Templeton, and Fidelity, all of which have been promoting tokenized money market funds in recent years, aiming to leverage blockchain to enhance the issuance, transfer, and settlement processes of traditional assets.