Tokenized Stablecoin Innovation
Invesco Files SEC Paperwork for Tokenized Stablecoin Reserve Fund to Back Stablecoins
Anonymous
Key Points
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The Invesco Stablecoin Reserves Onchain Fund would be classified as a government money market fund under Rule 2a-7 and would be integrated into Invesco's Short-Term Investments Trust, aligning with regulatory cash-like reserve structures.
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Superstate will serve as a sub-transfer agent to tokenize fund shares and maintain a blockchain-based shareholder registry, creating a bridge between on-chain ownership and traditional fund records.
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The GENIUS Act’s 100% reserve-backing requirement for stablecoins informs the fund’s structure, which targets cash, short-dated U.S. Treasuries, and repurchase agreements to maintain a $1 NAV.
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On-chain governance features include permissioned transfers via an off-chain allowlist for KYC’d wallets, with ownership recorded both in the fund’s registry and on a supported public blockchain.
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Industry outlook and competition are upbeat, with Citi projecting the tokenized stablecoin reserve market could reach trillions in the coming years and major institutions like BlackRock, State Street, Morgan Stanley, JPMorgan, and Goldman Sachs pursuing tokenized reserve products.
Invesco has filed paperwork with the SEC to launch the Invesco Stablecoin Reserves Onchain Fund, a tokenized money market fund built to hold reserves for stablecoin issuers. The fund will maintain a $1 net asset value and invest in cash, short-term U.S. Treasuries, and repurchase agreements, according to crypto.news.
The filing puts Invesco — which manages $2.45 trillion in assets — at the center of a fast-growing race among Wall Street giants to capture stablecoin reserve dollars. BlackRock, JPMorgan, State Street, Morgan Stanley, and Goldman Sachs are all pursuing similar products, The Block reported.
GENIUS Act Forces Stablecoin Issuers to Find Regulated Reserves
The fund's structure flows directly from the GENIUS Act, signed into law in July 2025. The law requires stablecoin issuers to back every token one-to-one with high-quality liquid assets. Eligible reserves are limited to cash, U.S. Treasuries maturing within 93 days, and overnight repurchase agreements, according to coinlaw.io.
Before the GENIUS Act, stablecoin issuers like Circle managed reserves through private bank arrangements. The 2023 Silicon Valley Bank collapse exposed the danger — Circle held $3.3 billion there when it failed. The new law pushes issuers toward regulated 1940 Act money market funds with daily liquidity and public transparency, cryptodaily.co.uk reported.
Superstate Bridges the Gap Between Blockchain and Fund Records
Invesco has tapped Superstate Services LLC as a sub-transfer agent to tokenize fund shares. Superstate records ownership both in the fund's traditional registry and on a public blockchain. Only wallets that have passed KYC checks appear on an off-chain allowlist and can receive or send shares, according to blazetrends.com.
The two firms have already worked together. In March 2026, Invesco took over management of Superstate's USTB fund, which already holds between $900 million and $967 million in assets. Robert Leshner, Superstate's CEO, called the broader collaboration the "blueprint for how funds and ETFs will come onchain."
Wall Street's Race to Own the Stablecoin Reserve Market
Invesco is not alone. BlackRock filed for its own stablecoin reserve vehicle on May 18, 2026. State Street launched its Galaxy Onchain Liquidity Sweep Fund on June 8, 2026. JPMorgan already runs the OnChain Liquidity-Token Money Market Fund, known as JLTXX, according to weex.com.
Citi projects the broader tokenized asset market will reach $5.5 trillion by 2030 in a base case, and $8.2 trillion in a bull case. Tokenized real-world assets — excluding stablecoins — have already grown from $6 billion in early 2025 to $31 billion by May 2026, according to blazetrends.com.
On-Chain Reserves Promise Speed but Carry Real Risks
Analysts say putting reserves on a blockchain creates 24/7 settlement and instant auditability. Because Invesco uses Superstate's open rails rather than a private platform, its fund could work across multiple stablecoin ecosystems — a key difference from JPMorgan's closed Onyx system, cryptodaily.co.uk reported.
Critics are less enthusiastic. Mark Hays of The American Prospect warned that stablecoins "haven't proven to be all that stable" and that blockchain integration adds smart contract risk on top of existing financial risk. The GENIUS Act's strict 93-day maturity limit may also produce lower yields than standard money market funds if interest rates fall, according to coinlaw.io.
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