Invesco Enters Stablecoin Reserve Market Amid Intensifying Competition

Invesco, a $2.5 trillion asset manager, has submitted a regulatory filing to launch a blockchain-based money market fund designed for stablecoin issuers. The Invesco Stablecoin Reserves Onchain Fund will target clients such as Aave and other digital currency providers that require secure, highly liquid reserve holdings to back their dollar-pegged tokens.

The GENIUS Act, federal legislation enacted last summer, mandates that issuers maintain approved asset types as backing. Invesco's proposed fund is structured specifically to satisfy these regulatory mandates.

Superstate, a blockchain technology provider, will serve as the fund's sub-transfer agent and handle the tokenization process for fund shares. The firm will also oversee a blockchain-connected shareholder record-keeping system.