Invesco’s move is another sign that asset managers are increasingly pursuing a new business opportunity created by stablecoins. These cryptocurrencies are designed to maintain a fixed value, usually pegged to a US dollar, and are backed by reserve assets such as cash and short-term Treasury bonds. As issuance grows, so does the demand for companies that can manage these reserves.
Citigroup projects that the stablecoin market could expand 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 filed applications to launch funds intended to serve as stablecoin reserve vehicles, reflecting increasingly intense competition to provide the infrastructure behind digital dollars.
The presentation 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 placed Invesco alongside companies like BlackRock, Franklin Templeton and Fidelity that have embraced tokenized money market funds as a way to modernize the way traditional assets are issued, transferred and settled using blockchain rails.
