Asset management giant Invesco has submitted an application to the US Securities and Exchange Commission (SEC) to launch an onchain money market fund designed for stablecoin reserves. According to an updated filing submitted on June 24, the product will be structured under the Invesco Stablecoin Reserves Onchain Fund within Invesco’s Short-Term Investments Trust.
Fund structure and objectives
The application reveals that the fund does not yet have a trading symbol and could come into effect within approximately 60 days if no objections are raised by the SEC. The fund specifically targets the reserve requirements of stablecoin issuers but clarifies that it will not directly hold stablecoins in its portfolio.
Instead, the fund will invest in highly liquid and high-quality US dollar-denominated assets such as US Treasuries, repurchase agreements, and cash equivalents. Invesco states that this asset mix aims to support a $1 stable net asset value and comply with highlighted reserve rules under the GENIUS Act framework.
The application explicitly states that the fund will not hold stablecoins, but rather intends to meet reserve needs through investments in liquid, high-quality dollar assets.
Blockchain records with traditional structure
While blockchain technology will not manage the underlying investments, it will be used to record fund ownership. Superstate Services will serve as the subtransfer agent, maintaining digital representations of fund shares on approved public blockchains. Superstate is already recognized for its tokenized government securities solutions within the fintech industry.
Mini glossary: A subtransfer agent is a service provider responsible for updating fund shareholder records and tracking transfers of ownership. A tokenized share refers to ownership information recorded digitally on the blockchain.
Importantly, the traditional off-chain recordkeeping system will be preserved. Only verified wallets will be able to transact via blockchain, a model that aims to provide institutional users with faster settlement and greater operational efficiency without stepping outside regulated investment product frameworks.
While the traditional registration system remains in place, verified wallets will be required for blockchain-based transactions, enabling institutional clients to access a faster settlement platform.
Growing institutional interest and industry trends
With $2.45 trillion in assets under management, Invesco’s move highlights increasing institutional interest in stablecoin reserve infrastructure that complies with regulations. Creating a regulated reserve pool that offers daily liquidity and traditional securities returns to stablecoin issuers has emerged as a major sector trend.
Earlier this year, Invesco partnered with Superstate to take on the daily administration of Superstate’s USTB designated $700 million tokenized US Treasury fund. The latest filing marks a further step in deepening the collaboration between the two companies.
Other prominent financial institutions developing similar products include State Street, BlackRock, Morgan Stanley, BNY, JPMorgan, and Goldman Sachs, underscoring the acceleration of this industry trend.
If the SEC approves the new application, this could pave the way for other asset managers to develop their own reserve funds and offer stablecoin issuers a broader range of regulated reserve management options.
