Invesco’s move is another sign that asset managers are increasingly chasing a new business opportunity created by stablecoins. These cryptocurrencies are designed to maintain a fixed value, typically pegged to a US dollar, and are backed by reserve assets such as cash and short-term government bonds. As issuance grows, so does the demand for companies that can manage these reserves.
Citigroup projects that the stablecoin market could expand to as much as $4 trillion by 2030, up from about $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 backup vehicles, reflecting the heightened competition to provide the infrastructure behind digital dollars.
The application 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.
The 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.
