Eight of the world's largest asset managers have filed or launched dedicated money market funds targeting stablecoin reserve management in the first half of 2026. BlackRock, JPMorgan, Morgan Stanley, Fidelity, Goldman Sachs, BNY, State Street, and Invesco are competing for a slice of the approxim...
"We are pleased to deliver a new investment solution to the marketplace that seeks to address the needs of stablecoin issuers." — Fred McMullen, Co-Head of Global Liquidity, Morgan Stanley Investment Management
Eight of the world's largest asset managers have filed or launched dedicated money market funds targeting stablecoin reserve management in the first half of 2026. BlackRock, JPMorgan, Morgan Stanley, Fidelity, Goldman Sachs, BNY, State Street, and Invesco are competing for a slice of the approximately $315 billion in reserves that back circulating stablecoins — a pool that Citigroup projects could reach $4 trillion by 2030.
The catalyst is the GENIUS Act, signed into law in July 2025, which for the first time defines eligible reserve assets for payment stablecoin issuers at the federal level. The law explicitly permits registered government money market fund shares — including tokenized versions — as qualifying reserves. That provision converted a previously informal arrangement between stablecoin issuers and fund managers into a regulated, addressable product category. The result: a fee war over who manages the cash behind digital dollars.
What separates this from a standard money-market product launch cycle is the on-chain dimension. Three of the eight entrants — BlackRock, JPMorgan, and Invesco — have filed to issue tokenized fund shares on public blockchains, creating a parallel distribution rail where stablecoin issuers can hold reserve assets natively on Ethereum without off-chain reconciliation. The remaining five operate conventional off-chain share registries but comply with the same GENIUS Act reserve composition rules.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), enacted in July 2025, established the first federal framework governing payment stablecoin reserves. The law requires issuers to maintain reserves backing outstanding stablecoins on at least a 1:1 basis. Permitted reserve assets include:
The law explicitly permits tokenized versions of all eligible assets except repurchase agreements and reverse repurchase agreements. This provision created the legal basis for on-chain fund shares to serve as stablecoin backing — a structural change that triggered the current wave of filings.
Prior to the GENIUS Act, stablecoin reserve management was governed by state-level money transmitter rules and informal agreements. Circle, the issuer of USDC, already parked approximately 80% of its reserves in a BlackRock-managed government money market fund. Tether held over $141 billion in U.S. Treasury exposure as of its Q4 2025 attestation. The GENIUS Act formalized these practices and opened the door to competition.
| Asset Manager | Fund Name / Ticker | Launch / Filing Date | Structure | On-Chain | Fee | |---|---|---|---|---|---| | BlackRock | BSTBL (Ethereum), BRSRV (multi-chain) | Filed May 8, 2026 | Rule 2a-7 gov't MMF | Yes | Not disclosed | | JPMorgan | JLTXX (Ethereum / Kinexys) | Filed May 12, 2026 | Rule 2a-7 gov't MMF | Yes | Not disclosed | | Morgan Stanley | MSNXX | Launched Apr 16, 2026 | Gov't MMF | No | 0.15% | | Goldman Sachs | Stablecoin Reserves Fund | Launched Q1 2026 | Gov't MMF | No | Not disclosed | | BNY | Dreyfus Stablecoin Reserves Fund | Launched Q1 2026 | Gov't MMF | No | Not disclosed | | State Street | SSCXX | Launched Jun 8, 2026 | Gov't MMF | No | Not disclosed | | Fidelity | FYMXX | Launched Jun 18, 2026 | Gov't MMF | No | 0.18% | | Invesco | Stablecoin Reserves Onchain Fund | Filed Jun 24, 2026 | Rule 2a-7 gov't MMF | Yes | Not disclosed |
All eight funds invest in the same narrow universe: cash, U.S. Treasury securities maturing within 93 days, and overnight Treasury-backed repurchase agreements. All target a $1.00 net asset value. The differentiation lies in distribution method, fee structure, and whether shares exist on-chain.
BlackRock's entry is notable for its dual-fund approach. BSTBL tokenizes shares of its existing $6.9 billion Treasury liquidity fund on Ethereum. BRSRV is a new multi-chain vehicle. Both supplement BlackRock's existing BUIDL fund, which holds over $2.5 billion in tokenized Treasury assets across eight blockchains and has been operational since March 2024.
JPMorgan seeded JLTXX with a $100 million initial investment from J.P. Morgan Asset Management, with additional participation from Anchorage Digital. The fund uses JPMorgan's Kinexys blockchain unit (formerly Onyx) to operate on public Ethereum.
Of the eight entrants, three have filed to issue tokenized fund shares on public blockchains: BlackRock, JPMorgan, and Invesco. The remaining five — Morgan Stanley, Goldman Sachs, BNY, State Street, and Fidelity — record shares through conventional off-chain registries.
The distinction matters operationally. On-chain shares allow stablecoin issuers to hold reserve assets on the same infrastructure they use to mint and settle stablecoins. This eliminates the reconciliation gap between off-chain fund accounts and on-chain stablecoin supply. For issuers managing billions in reserves across multiple chains, this reduces operational overhead.
Invesco's approach is distinct among the on-chain entrants. The fund uses Superstate Services LLC, founded by Compound creator Robert Leshner, as sub-transfer agent. Superstate maintains the official shareholder record through a blockchain-integrated recordkeeping system. This contrasts with JPMorgan's use of its proprietary Kinexys platform and BlackRock's partnership with Securitize.
Superstate's role extends beyond the Invesco filing. The firm previously managed the USTB tokenized Treasury fund, which Invesco took over in March 2026. Superstate now holds approximately $769 million in on-chain assets across its platform, the majority on Ethereum. Leshner has characterized the arrangement as "the blueprint for how funds and ETFs will come onchain."
ProShares, while not among the eight MMF entrants, launched the IQMM exchange-traded fund in February 2026 — a GENIUS Act-compliant money market ETF that generated $17 billion in first-day trading volume. Coinbase subsequently invested in the fund, signaling issuer appetite for ETF-structured reserve vehicles.
Only two of the eight funds have publicly disclosed fee structures. Morgan Stanley's MSNXX charges a management fee of 0.15%. Fidelity's FYMXX carries a 0.25% management fee with a net expense ratio of 0.18%.
At current stablecoin supply of approximately $315 billion, a fund capturing even 5% of total reserves would manage roughly $15.75 billion. At a 0.15%-0.25% fee, that translates to $23.6 million to $39.4 million in annual revenue per fund. The numbers scale rapidly: if stablecoin supply reaches Citigroup's $4 trillion projection by 2030, the same 5% share yields $200 billion in AUM and $300–500 million in annual fees.
Minimum investment thresholds vary. Fidelity requires $1 million (with the option to waive). Morgan Stanley's minimum is $10 million. These thresholds exclude small issuers and retail participants, positioning the funds squarely for institutional stablecoin operators.
The fee competition is nascent. As more funds launch and AUM data becomes public, fee compression is likely. Government money market funds in traditional finance charge 0.08%–0.20% on average. The stablecoin-specific funds are pricing at the upper end of that range, likely reflecting the operational costs of GENIUS Act compliance and, for on-chain products, blockchain infrastructure maintenance.
The total stablecoin market stands at approximately $315–322 billion as of late June 2026, according to CoinDesk. This figure exceeds the foreign exchange reserves of 95 nations. The two dominant issuers account for the vast majority:
The concentration creates a structural dynamic: two issuers control the majority of addressable reserves. New entrants — both stablecoin issuers enabled by the GENIUS Act's federal licensing framework and existing issuers seeking to diversify reserve managers — represent the growth opportunity for fund managers.
Growth projections vary widely. Citigroup estimates $1.6–3.7 trillion by 2030. State Street cites a $1.9–4 trillion range. McKinsey projects $2 trillion. These figures, if realized, would make stablecoin reserve management a multi-billion-dollar annual revenue line for participating asset managers.
The on-chain fund entrants rely on two distinct infrastructure models.
Superstate operates as a third-party tokenization and transfer-agent platform. Founded by Robert Leshner (creator of the Compound lending protocol), Superstate pivoted from running its own funds to operating infrastructure for other managers. Its FundOS platform powered the launch of Coinbase Asset Management's tokenized credit fund and now serves as the on-chain rails for Invesco's stablecoin reserve product. Total on-chain assets across Superstate's platform: approximately $769 million.
Kinexys is JPMorgan's in-house blockchain unit, renamed from Onyx. Kinexys processes over $2 billion in daily transaction value across JPMorgan's institutional clients. For JLTXX, Kinexys operates the Ethereum-based token infrastructure, maintaining the link between on-chain share tokens and off-chain NAV calculations.
BlackRock uses Securitize as its tokenization partner for BUIDL and the new BSTBL product. Securitize operates across eight blockchains and handles investor onboarding, KYC, and token issuance.
The infrastructure choices reflect a broader question in tokenized finance: whether asset managers will build proprietary blockchain stacks (JPMorgan's approach), rely on specialized third-party platforms (Invesco's approach via Superstate), or partner with tokenization-native firms (BlackRock's approach via Securitize).
The proliferation of GENIUS Act-compliant reserve funds changes the operational calculus for stablecoin issuers in three ways:
1. Reserve diversification becomes practical. Before the GENIUS Act, most issuers managed reserves through bilateral arrangements with one or two banks and fund managers. Eight dedicated products from competing managers create the conditions for multi-manager reserve strategies, reducing counterparty concentration.
2. Yield on reserves becomes a competitive factor. Government money market funds currently yield approximately 3.5–4.5%, depending on the rate environment. Stablecoin issuers that previously held reserves in non-interest-bearing or low-yield accounts can now access Treasury yields through compliant vehicles. That yield accrues to the issuer, not the stablecoin holder — the GENIUS Act does not require issuers to pass through interest.
3. On-chain reserves simplify attestation. For issuers using tokenized fund shares, reserve holdings are verifiable on-chain in real time. This addresses a persistent criticism of stablecoin transparency — Tether, for example, publishes attestations quarterly rather than in real time. On-chain fund shares could enable continuous proof of reserves without relying on periodic third-party attestations.
The stablecoin reserve fund race is, at its core, a fee-management competition over a fast-growing pool of Treasury-adjacent assets. The economics are straightforward: stablecoin issuers must hold reserves, the GENIUS Act defines what qualifies, and asset managers are positioning to warehouse those reserves for a fee. The on-chain dimension adds operational efficiency for issuers but does not change the underlying business model — this is money market fund management with a blockchain distribution layer.
The pace of entry — eight major filings in under six months — suggests asset managers view the stablecoin reserve opportunity as durable rather than cyclical. Whether the addressable market reaches Citigroup's $4 trillion projection or settles closer to current levels, the competitive structure is set: Wall Street's largest fund complexes are now direct participants in the plumbing of stablecoin infrastructure.
The remaining question is concentration. If Tether and Circle continue to dominate stablecoin issuance, their existing reserve manager relationships (BlackRock for Circle, a mix of Treasury direct holdings for Tether) may prove difficult to displace. The real growth in fund AUM likely depends on the emergence of new GENIUS Act-licensed stablecoin issuers — banks, fintechs, and payment companies — that need compliant reserve vehicles from day one.