Invesco filed an SEC application on June 24 to create the Invesco Stablecoin Reserves Onchain Fund, a money market fund that issues shares directly on a public blockchain. The fund will serve stablecoin issuers compliant with the GENIUS Act framework, a legislative proposal that sets reserve standards for dollar-backed stablecoins.
The filing marks a shift in how stablecoin reserves might be managed at scale. Rather than holding cash or Treasuries in traditional bank accounts, issuers could buy tokenized fund shares on-chain, streamlining settlement and reducing operational friction. Invesco is distributing the shares through Superstate, a platform for tokenized financial assets.
Citigroup projects the stablecoin market will reach $4 trillion by 2030, and Invesco's move signals confidence that regulatory clarity under GENIUS Act terms could unlock institutional adoption. The SEC must still approve the filing. A growing list of asset managers and custodians have signaled interest in tokenized treasury and money market products, though adoption constraints remain unclear.
The GENIUS Act, backed by bipartisan support in Congress, would require stablecoin issuers to maintain full reserves in highly liquid assets. That creates demand for custodians and fund vehicles that can meet those standards while reducing settlement friction. Invesco's onchain structure addresses that specific need.
Other major institutions have launched or proposed similar tokenized products in recent months, but Invesco's fund targets a narrower use case: reserve backing for stablecoins rather than general institutional investment. That focus could differentiate it in a crowded field.
The SEC's review process will determine whether tokenized money market funds can operate under existing rules or require fresh guidance. Approval timelines for similar applications have varied widely. If cleared, the fund could become a template for how institutional crypto infrastructure matures under regulatory oversight.