Invesco Files Onchain Money Market Fund for Stablecoin Reserves

Invesco filed to add a tokenized money market fund to its Short-Term Investments Trust. The Invesco Stablecoin Reserves Onchain Fund is designed for stablecoin issuers that need compliant reserve assets. It does not have a ticker yet. The filing was submitted to the SEC on June 24 and is expected to become effective about 60 days later.

The fund qualifies as a government money market vehicle under Rule 2a-7. It will invest in U.S. Treasuries, repo agreements, and cash equivalents. The goal is a stable $1 net asset value. The onchain component comes through Superstate, which will act as sub-transfer agent for tokenized shares. The filing does not name the blockchains. Superstate has historically tokenized on Ethereum and Solana. The filing discusses Ethereum-related risks. Solana is not mentioned.

Invesco reported $2.45 trillion in assets under management as of May 31. It is entering a competitive market. State Street launched a similar GENIUS-compliant money market fund last week. BlackRock, Morgan Stanley, BNY, JPMorgan, and Goldman Sachs have all released or prepared related offerings. The federal stablecoin framework clarified what assets issuers can hold against circulating tokens. That turned reserve management into a defined institutional business. Stablecoin issuers need liquid, conservative, compliant assets. Large asset managers already run products built around those characteristics.

The filing builds on an existing Invesco-Superstate relationship. In March, Invesco took over day-to-day portfolio management of Superstate's tokenized U.S. Treasury fund, which had about $700 million in assets. That fund, renamed the Invesco Short Duration US Government Securities Fund, continues to trade under USTB with Superstate providing tokenization support. The new reserve fund deepens that partnership.

For stablecoin issuers, a tokenized money market fund offers a reserve asset that sits closer to onchain operations while still using traditional short-term instruments. That could reduce complexity around reserve composition and liquidity access. It also introduces reliance on an external fund manager and the operational risk of blockchain recordkeeping. The filing notes Ethereum-related risks including network congestion and smart contract vulnerabilities.

The main question is how much reserve activity will move into tokenized money market funds versus remaining in direct Treasury holdings, bank deposits, or repo arrangements. The answer depends on fees, liquidity terms, regulatory treatment, blockchain support, and whether issuers are willing to cede reserve management to external firms.

Stablecoin reserve management is becoming a bridge between traditional money markets and tokenized finance. Invesco's proposed fund adds another large asset manager to that bridge. According to a BCG report, the tokenized asset market could reach $88 trillion by 2035. For traders watching the stablecoin ecosystem, the metric to track is adoption by major issuers like Circle or Paxos. If they allocate a meaningful share of reserves to tokenized funds, the model gains credibility. If they stick with direct holdings, the product may remain niche.

The fund is expected to become effective around late August, assuming SEC no-action.