Invesco’s move is another sign of asset managers increasingly chasing a new business opportunity created by stablecoins. These cryptocurrencies are designed to maintain a fixed value, typically tied to one U.S. dollar, and are backed by reserve assets such as cash and short-term Treasuries. As issuance grows, so does demand for firms that can manage those reserves.
Citigroup projects the stablecoin market could expand to as much as $4 trillion by 2030, up from roughly $300 billion today, creating a potentially lucrative market for fund managers.
BlackRock, State Street and ProShares also filed to launch funds aimed at serving as stablecoin reserve vehicles, reflecting intensifying competition to provide the infrastructure behind digital dollars.
The filing also builds on Invesco’s broader tokenization strategy. Earlier this year, the firm took over management of Superstate’s roughly $900 million tokenized Treasury fund, becoming the first third-party asset manager to use Superstate’s blockchain-based FundOS platform.
That move placed Invesco alongside firms such as BlackRock, Franklin Templeton and Fidelity that have embraced tokenized money market funds as a way to modernize how traditional assets are issued, transferred and settled using blockchain rails.