Invesco’s move is another sign that asset managers are increasingly pursuing the new business opportunity created by stablecoins. These cryptocurrencies are designed to maintain a fixed value, usually tied to a US dollar, and are backed by reserve assets such as cash and short-term Treasuries. As output increases, so does demand for firms that can manage those reserves.
Citigroup estimates that the stablecoin market could grow to $4 trillion by 2030, up from about $300 billion today, creating a potentially lucrative market for fund managers.
BlackRock, State Street and ProShares have also applied to launch funds intended to serve as stablecoin reserve vehicles, reflecting growing competition to provide the infrastructure behind the digital dollar.
The filing also builds on Invesco’s broader tokenization strategy. Earlier this year, the firm took over management of Superstate’s approximately $900 million tokenized treasury fund, becoming the first third-party asset manager to use Superstate’s blockchain-based FundOS platform.
That move puts Invesco alongside companies like BlackRock, Franklin Templeton and Fidelity, which have adopted token money market funds as a way to modernize the way traditional assets are issued, transferred and settled using blockchain rails.