The Stablecoin Gold Rush Has a Plot Twist
In the first half of 2026, six leading institutions—BlackRock, Goldman Sachs, State Street, Fidelity, BNY Mellon and Invesco—either launched or filed with the SEC for Rule 2a‑7 money‑market funds that meet the GENIUS Act’s narrow reserve criteria (cash, Treasuries ≤ 93 days, Treasury‑backed repos, and qualifying money‑market funds). BlackRock’s Circle Reserve Fund already houses most of USDC’s backing, while BNY’s Dreyfus Stablecoin Reserves Fund (BSRXX) debuted in November 2025. State Street’s SSCXX started with $121 million and a 3.51 % yield; Fidelity’s FYMXX entered a week later with a 0.25 % fee. Invesco’s filing adds a twist: Superstate will issue tokenized fund shares on a public blockchain, creating an on‑chain reserve asset while retaining 1940 Act registration. JPMorgan’s JLTXX and Morgan Stanley’s pending products round out a rapid “feeding frenzy” of institutional reserve solutions.
The scramble reflects a structural shift. The GENIUS Act, enacted July 2025, gave stablecoins a federal definition of eligible reserves, effectively opening a new asset‑management niche. By outsourcing reserve custody to established money‑market managers, stablecoin issuers such as Circle and Tether can offload operational complexity, meet daily liquidity demands, and satisfy stringent audit requirements without building proprietary repo desks. This mirrors the historical layering of cash‑management services in banking, where banks, custodians and fintechs each specialize. Invesco’s tokenized approach hints at a longer‑term convergence, allowing reserve assets to be moved programmatically on‑chain, potentially reducing settlement friction for issuers and opening new revenue streams for tokenization platforms like Superstate.
Looking ahead, the concentration of reserve holdings among a handful of Tier‑1 managers raises systemic risk if a fund faces a redemption shock or regulatory clamp‑down. The success of tokenized reserves will hinge on the finalization of pending OCC, FDIC and Treasury rules and on market acceptance of on‑chain share registries. Issuers may increasingly negotiate fee structures and yield targets with these funds, while competitors outside the traditional money‑market space could attempt to replicate the model. Observers should track the performance of SSCXX’s yield, the uptake of Invesco’s tokenized shares, and any SEC or Treasury guidance that could alter the permissible asset mix.
Key Takeaways
BlackRock, Goldman Sachs, State Street, Fidelity, BNY Mellon and Invesco have all created or filed for GENIUS‑Act‑compliant money‑market funds to serve as stablecoin reserve vehicles in 2026.
The GENIUS Act’s narrow reserve definition turned the stablecoin market into a lucrative niche for Rule 2a‑7 funds, prompting a rapid “feeding frenzy” of products.
Invesco’s partnership with Superstate to tokenize fund shares introduces
About the Source
This analysis is based on reporting by HackerNoon. Here is a short excerpt for context:
Rather than competing to issue stablecoins, major asset managers are positioning themselves to manage the reserves backing them. The article argues that the GENIUS Act created an entirely new asset management category, prompting firms like BlackRock, Fidelity, State Street, Goldman Sachs, BNY, and Invesco to launch or file stablecoin reserve funds that could become foundational infrastructure for a multi-trillion-dollar digital dollar ecosystemRead the original at HackerNoon
