The biggest names in traditional money management are no longer watching crypto from the sidelines — they want to run its plumbing.
What Invesco filed
Invesco filed with the SEC on June 24 to add a new vehicle — a tokenized government money-market fund designed to hold the assets that back stablecoins, The Block reported. Structured under the standard money-fund rule (Rule 2a-7) and aiming for a steady $1 share price, it would invest in U.S. Treasuries, repurchase agreements and cash — the same holdings as a conventional money fund. The twist is that its shares would be tokenized on public blockchains, with the crypto firm Superstate handling the on-chain recording. Invesco manages about $2.45 trillion in assets, the company says.
What the jargon means
A stablecoin is a digital token built to hold a fixed value, almost always $1. To keep that peg credible, issuers must hold reserves — cash and short-term Treasuries — equal to every token in circulation. Those reserves sit in something, and increasingly that something is a regulated money-market fund. Tokenization means representing ownership of a normal financial asset (here, shares of that fund) as a token on a blockchain, so it can be moved, verified and settled on-chain rather than through slower traditional channels.
The pools involved are enormous: the total stablecoin market is around $296 billion, dominated by Tether's USDT and Circle's USDC, per RWA.xyz — and every one of those tokens needs backing.
The law that opened the door
The rush follows the GENIUS Act, the U.S. stablecoin law passed in 2025, which set the first federal rules for dollar stablecoins and spelled out which assets count as eligible reserves. Government money-market funds made the approved list, and Invesco is explicitly positioning its fund as compliant — a label that matters to issuers choosing where to park reserves under the new regime.
A crowded field already
Invesco is not first. BlackRock's tokenized money fund, BUIDL, launched in 2024 and held around $2.4 billion as of late June, while Franklin Templeton's tokenized fund stood near $1.6 billion, per RWA.xyz. State Street, JPMorgan, Goldman Sachs and others have filed or built competing products. Tokenized Treasury and money-fund products now total tens of billions of dollars.
Why they want it
The logic is simple math: stablecoin issuers need to park hundreds of billions in compliant reserves, and every dollar parked in a fund earns the manager a fee. Beyond fees, these products mark a structural merging of traditional finance and crypto — the reserves behind a dollar token are now, in some cases, shares of an ordinary SEC-registered fund, wrapped on a blockchain and wired into on-chain settlement.
The catch for Invesco is that BlackRock's two-year head start has built issuer relationships and technical integrations that are hard to copy quickly. Its fund still needs to clear SEC effectiveness, expected around late August, and then win allocations from issuers. But the GENIUS Act has made the prize explicit and federally blessed — and that is pulling in every major name in asset management.
