Invesco takes over management of an on-chain Treasury fund, entering the tokenization market

Global asset manager Invesco is set to make a full-scale entry into the tokenized finance market by acquiring the management of an on-chain Treasury fund.

According to crypto-focused outlet CoinDesk on the 24th, Invesco will take over management of a tokenized U.S. Treasury fund (USTB) worth about $900 million that has been run by Superstate.

The fund invests in short-term U.S. Treasuries and is considered one of the larger tokenized Treasury funds. Through this acquisition, Invesco will enter the tokenized Treasury market, which has grown to about $1.2 billion.

The management transfer is slated for the second quarter of this year, and the fund will be renamed the “Invesco Short Duration US Government Securities Fund.” The existing token structure and on-chain infrastructure will be maintained.

The tokenized Treasury market is growing rapidly because blockchain-based infrastructure enables real-time settlement and 24-hour trading. Major asset managers such as BlackRock, Franklin Templeton, and Fidelity have already moved into the space.

Kathleen Lin, head of digital assets at Invesco, said, “We have continued to build capabilities in digital asset products for institutional investors,” adding, “Superstate’s on-chain infrastructure naturally aligns with our strategy to expand tokenized products.”

Under the arrangement, Invesco will handle investment management, while Superstate will continue operating the technical infrastructure, including token issuance and on-chain settlement.

Market participants expect that as more large asset managers join, the integration of tokenized assets with the traditional financial system could accelerate further.