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Invesco Launches Crypto Fund Backed by T-Bills
24 Mar
Summary
- Invesco is launching a crypto investment vehicle holding over $900 million in assets.
- This fund focuses on real world assets (RWAs) packaged in blockchain wrappers.
- RWAs offer instant settlement and access to yield, unlike traditional stablecoins.
Invesco has revealed its new crypto investment vehicle, the Superstate Short Duration US Government Securities Fund (USTB), which already holds over $900 million in assets under management. This initiative aligns with a broader trend where asset managers are investing in real world assets (RWAs), which are conventional financial products repackaged using blockchain technology.
Similar to BlackRock's BUIDL fund, Invesco's USTB focuses on T-bills. Other RWA funds, like those backed by physical gold, are also emerging. The appeal of these tokenized assets lies in their ability to facilitate instant trade settlements and provide access to yield, differentiating them from stablecoins.
Superstate, the technology partner behind USTB, aims to demonstrate the viability of RWAs to Wall Street. Founded in 2022, Superstate also operates as a transfer agent and intends to offer its tokenization technology as a white-label service. This collaboration underscores a long-term commitment to institutional-grade digital asset products.
BlackRock CEO Larry Fink highlighted the significance of tokenization in his recent shareholder letter, stating it could update the financial system's infrastructure for easier investment issuance, trading, and access. The expansion of RWA offerings by firms with large retail bases may soon broaden their market beyond institutional investors.
