Nine of the largest U.S. asset managers have filed or launched dedicated money market funds designed to hold stablecoin issuer reserves since April 2026, targeting a pool of assets that currently exceeds $300 billion and that Citigroup projects could reach $4 trillion by 2030. The catalyst: the G...
"Tokenization is the future of investment products, and we're building it together." — Robert Leshner, CEO, Superstate
Nine of the largest U.S. asset managers have filed or launched dedicated money market funds designed to hold stablecoin issuer reserves since April 2026, targeting a pool of assets that currently exceeds $300 billion and that Citigroup projects could reach $4 trillion by 2030. The catalyst: the GENIUS Act, signed into law in 2025, which mandates that payment stablecoin issuers hold reserves exclusively in cash, short-duration U.S. Treasuries, and repurchase agreements — precisely the instruments these funds hold.
Invesco, managing $2.45 trillion in total AUM, became the latest entrant on June 24, 2026, filing with the SEC to register the Invesco Stablecoin Reserves Onchain Fund. The filing follows comparable launches by Morgan Stanley (April 23), State Street (June 8), and Fidelity (June 15), and earlier filings by BlackRock (May 8). The funds share a near-identical mandate — maintain a $1 NAV via Treasury bills maturing in 93 days or fewer — but differ on fees, minimum investments, and blockchain infrastructure. What was a niche tokenization experiment 18 months ago is now a fee war among firms collectively managing over $25 trillion.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) created the first comprehensive federal framework for payment stablecoins. Its reserve requirements are the structural driver behind the asset management rush.
Under the law, permitted payment stablecoin issuers (PPSIs) must hold reserves in a narrow band of eligible assets: cash at insured depository institutions, U.S. Treasury securities with remaining maturity of 93 days or less, overnight repurchase agreements collateralized by Treasuries, and shares in government money market funds that comply with SEC Rule 2a-7. Reserves must be segregated from operational funds. Rehypothecation is explicitly prohibited.
On April 7, 2026, the FDIC Board of Directors approved a notice of proposed rulemaking to implement these requirements, establishing prudential standards for FDIC-supervised PPSIs and insured depository institutions engaged in stablecoin activities. The OCC issued parallel proposed rules in March 2026. Comment periods for both sets of rules close in Q3 2026, with final rules expected by year-end.
The net effect: stablecoin issuers need somewhere to park hundreds of billions of dollars in qualifying assets. Government money market funds are the obvious vehicle. The only question is which asset manager captures the mandate.
Morgan Stanley — Stablecoin Reserves Portfolio (MSNXX)
BlackRock — Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV)
State Street — Stablecoin Reserves Money Market Fund (SSCXX)
Fidelity — Reserves Digital Fund (FYMXX)
Invesco — Stablecoin Reserves Onchain Fund
Additional entrants reported in registration or launched include BNY (Dreyfus Stablecoin Reserves Fund) and Goldman Sachs Asset Management (Stablecoin Reserves Fund). ProShares has also filed a reserve vehicle.
The fee spread across announced funds is narrow but meaningful at scale:
| Fund | Manager | Fee | Minimum | |------|---------|-----|---------| | MSNXX | Morgan Stanley | 0.15-0.20% | $10M | | BRSRV | BlackRock | Not disclosed | Not disclosed | | SSCXX | State Street | Not disclosed | Not disclosed | | FYMXX | Fidelity | 0.25% | $1M | | Onchain Fund | Invesco | Not disclosed | Not disclosed |
At scale, the difference between 0.15% and 0.25% on $100 billion in reserves amounts to $100 million annually in fee revenue. For context, Tether alone holds reserves exceeding $140 billion. If even half of the current $309 billion stablecoin market migrated to these funds, the total fee pool at a blended 0.20% rate would reach approximately $309 million per year.
Morgan Stanley's 0.15% fee and $10 million minimum position it as the institutional low-cost provider. Fidelity's 0.25% fee with a lower $1 million minimum targets mid-tier and emerging issuers. Invesco has not disclosed its fee structure, but its Superstate-powered on-chain infrastructure may serve as a differentiator for issuers seeking blockchain-native settlement.
The funds split into two architectural camps.
Off-chain traditional: Morgan Stanley (MSNXX), Fidelity (FYMXX), State Street (SSCXX), and the Goldman and BNY entries use conventional fund structures with standard transfer agents. Stablecoin issuers hold shares like any institutional investor. Settlement follows T+1 or same-day cycles.
On-chain native: Invesco (via Superstate's FundOS) and BlackRock (via Securitize) issue tokenized shares on public blockchains. Ownership records exist simultaneously on traditional registries and on-chain. This architecture enables 24/7 settlement, programmable compliance, and composability with DeFi protocols.
The distinction matters for issuers operating globally across time zones. A stablecoin issuer processing redemptions at 2 AM UTC benefits from on-chain shares that can be transferred and verified without waiting for a transfer agent's business hours. However, on-chain structures carry additional smart contract and operational risk.
BlackRock's approach uses Securitize and a permissioned framework across multiple public chains. Invesco's uses Superstate — founded by Compound protocol creator Robert Leshner — which already manages the $900+ million USTB tokenized Treasury fund that Invesco took over in March 2026.
The stablecoin market stood at approximately $309 billion as of late June 2026, according to CoinGecko data. The market reached an all-time high of $321 billion in May 2026.
Two issuers dominate: Tether (USDT) at approximately $188 billion and Circle (USDC) at approximately $60 billion. Together they represent 93% of total stablecoin market capitalization.
Both already hold substantial Treasury positions. Tether's Q1 2026 attestation (audited by BDO Italia) showed approximately 80% of reserves in U.S. Treasuries, with the remainder in overnight repo, cash, gold (~$8 billion), Bitcoin (~$7 billion), and secured loans. Circle's reserves are managed through the BlackRock-managed Circle Reserve Fund (USDXX), an SEC-registered government money market fund custodied at BNY Mellon, with a mix of approximately 80% Treasuries and 20% cash.
Citigroup's Global Perspectives & Solutions unit, in its "Stablecoins 2030" report, projects $1.9 trillion in stablecoin issuance under the base case and $4.0 trillion under the bull case by 2030. Under the base case alone, that implies roughly $1.5 trillion in new reserve assets requiring compliant custody — a market larger than many sovereign debt portfolios.
The U.S. Treasury's TBAC (Treasury Borrowing Advisory Committee) has explicitly referenced stablecoin issuers as a meaningful demand source for short-duration bills, an acknowledgment that this market now influences government funding costs.
The stablecoin reserve race reshapes how economic value flows through the digital asset ecosystem. Under the pre-GENIUS framework, stablecoin issuers managed reserves largely in-house or through bespoke arrangements. The GENIUS Act effectively mandates intermediation by regulated fund managers.
The value chain now runs: blockchain user → stablecoin issuer → regulated money market fund → U.S. Treasury market. Each layer extracts a fee:
At a 4.5% Treasury yield and a 0% stablecoin yield (as is standard for USDT and USDC), the issuer captures approximately 4.25-4.35% after fund fees. On $300 billion in reserves, that represents roughly $12.8 billion in annual revenue flowing to stablecoin issuers — revenue that exists only because users hold non-interest-bearing tokens.
The asset managers' slice is smaller in percentage terms but significant in absolute dollars. At 0.20% on $300 billion, the total fee pool is $600 million annually. Under Citigroup's $1.9 trillion base case for 2030, that pool grows to $3.8 billion — comparable to a mid-tier asset management firm's entire revenue base.
The stablecoin reserve fund race is a distribution battle for Treasury bill management wrapped in blockchain infrastructure. The GENIUS Act compressed what might have been a decade-long migration into a regulatory mandate, forcing hundreds of billions in reserves into SEC-regulated vehicles within months.
The economic logic is straightforward: at current market size, the fee pool is modest but growing. At Citigroup's 2030 projections, it becomes a multi-billion-dollar revenue line. The firms positioning now — Morgan Stanley with lowest fees, BlackRock with incumbent USDC management, Invesco with on-chain architecture — are placing bets that stablecoin issuance will grow by an order of magnitude.
The open question is whether the market structure will consolidate around two or three dominant reserve managers (as government money market funds have historically done) or whether blockchain-native features — 24/7 settlement, programmable compliance, DeFi composability — will fragment the market among specialized providers. The data so far favors consolidation: BlackRock's $65 billion in Circle reserves dwarfs every other entrant's total AUM in this category. But the GENIUS Act rulemaking process is still open, and final rules expected in late 2026 could alter the competitive landscape.
What is not in question is the direction. The largest asset managers in the world are building infrastructure to serve as the backbone of the stablecoin economy. The fee structures have been set, the regulatory framework is in place, and the race is on.