Link of The Day
ICI: MMF Assets Up Again in August
After almost breaking the $8.0 trillion barrier six weeks ago, the Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets rising $18.3 billion to $7.928 trillion. Assets rose $55.4 billion the previous week and decreased $6.8 billion the week before this. MMF assets are up by $742 billion, or 10.4%, over the past 52 weeks (through 8/12/26), with Institutional MMFs up $579 billion, or 13.7% and Retail MMFs up $163 billion, or 5.5%. Year-to-date in 2026, MMF assets are up by $194 billion, or 2.5%, with Institutional MMFs up $168 billion, or 3.6% and Retail MMFs up $26 billion, or 0.8%. ICI's weekly release says, "Total money market fund assets increased by $18.26 billion to $7.93 trillion for the week ended Wednesday, August 12, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $20.69 billion and prime funds increased by $1.79 billion. Tax-exempt money market funds decreased by $4.22 billion.” ICI's stats show Institutional MMFs increasing $13.9 billion and Retail MMFs increasing $4.4 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.540 trillion (82.5% of all money funds), while Total Prime MMFs were $1.240 trillion (15.6%). Tax Exempt MMFs totaled $147.9 billion (1.9%). It explains, "Assets of retail money market funds increased by $4.40 billion to $3.10 trillion. Among retail funds, government money market fund assets increased by $3.17 billion to $1.98 trillion, prime money market fund assets increased by $3.54 billion to $992.35 billion, and tax-exempt fund assets decreased by $2.31 billion to $135.80 billion." Retail assets account for 39.1% of the total, and Government Retail assets make up 63.6% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $13.86 billion to $4.82 trillion. Among institutional funds, government money market fund assets increased by $17.52 billion to $4.56 trillion, prime money market fund assets decreased by $1.75 billion to $247.63 billion, and tax-exempt fund assets decreased by $1.91 billion to $12.10 billion." Institutional assets accounted for 60.9% of all MMF assets, with Government Institutional assets making up 94.6% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $72.5 billion to $8.361 trillion month-to-date in August (as of 8/12), assets reached an all-time high of $8.404 trillion on July 6. Assets decreased $61.4 billion in July, increased $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion last August. Note that `ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
Treasury Today on Tokenised MMFs
U.K.-based publication Treasury Today published a piece that interviews BlackRock's Head of Digital Cash Hannah Winter titled, "Tokenised money market funds: what are the use cases?" It states, "Corporate treasurers have long used money market funds (MMFs) to manage their cash. MMFs offer liquidity and security as well as a competitive yield, making them an attractive alternative to bank deposits. But in today's digital world, there's a new kid on the block. Tokenised money market funds (tMMFs) offer the benefits of traditional MMFs, while fund shares are represented as digital tokens on a blockchain. As a result, they offer additional functionality, such as the ability to transfer shares easily between investors." The piece asks, "So how do tMMFs work, which use cases do they support for corporate treasurers and which benefits do they offer compared to traditional MMFs?" Winter explains, "[I]n terms of shape and form, a tMMF is largely the same as a traditional MMF, with a similar underlying operating structure. However, the shares of the MMF have been wrapped into a token and are displayed on a blockchain. In the current market ... the underlying portfolio of securities is not tokenised." She says, "`tMMF shares are issued by the transfer agency in token form and can be held on either a private or a public blockchain. As a result, a tMMF share has features that differ from an analogue share. 'The benefit to corporate treasurers is that having the share held in token format introduces new features and new utility.'" Treasury Today tells us, "According to Winter, the market for tMMFs is 'really starting to take off.' For corporate investors, adoption is largely being driven by the need for real-time liquidity management, digital payments, improved collateral efficiencies and operational efficiencies. In the last 18 months, she says support for the stablecoin market has particularly been propelling growth in this space. 'A lot of the growth is still coming from the decentralised finance (DeFi) crypto native investor, which is helping to prove out the utility of digital cash as complementary investment product,' she adds. The current market for tMMFs includes more than US$30bn in tokenised real-world assets on-chain, with treasury funds accounting for around half of the total. 'We're seeing that expanding into more regulated money market products, and more issuers are coming to market to solve for this space,' Winter notes." The article adds, "But in the tokenised realm, it's important to note that not all funds are built equally. 'Issuers are selecting between regulated or unregulated fund structures, and between variations of native and digital twin models,' says Winter. 'It's important to understand the underlying fund structure, and the nature of the token. But there's a lot of issuance momentum coming from real demand that is starting to emerge from traditional investors.... We would say to investors that this is a trend that's here to stay, Winter concludes."
Schroders Tokenised USD Money Fund
An article published by Funds Europe, titled, "Schroders receives approval for tokenised money market fund," tells us, "Asset manager Schroders has received regulatory approval from the Central Bank of Ireland to launch its first tokenised share class of a US dollar money market fund. The Ireland-domiciled fund, with a tokenised share class, Schroders Onchain Active Returns, will be managed by Neil Sutherland, head of US fixed income and portfolio manager at Schroders, supported by the firm's credit specialists." The piece explains, "The launch will use Kinexys by J.P. Morgan's multi-chain asset tokenisation platform, allowing investors to execute redemptions and transfers through blockchain-based smart contracts. Schroders said the technology is designed to improve the mobility of money market fund shares beyond traditional transfer systems while enabling secure and transparent transactions between clients. The firm said the tokenised structure could also support future applications, including the use of fund shares as collateral as well as round-the-clock treasury and liquidity management. Kara Kennedy of J.P. Morgan's Kinexyx comments, "Tokenised financial infrastructure is no longer theoretical; it's restructuring liquidity, settlement and digital asset workflows at increasing speed. As demand for tokenised assets grows, tokenised money market funds can help meet investor needs while introducing new features enabled by blockchain technology." Schroders CFO Meagen Burnett adds, "By combining money market investments with the benefits of distributed ledger technology, we are offering investors a new level of access, efficiency and security. This milestone is a testament to our commitment to developing world-class solutions that meet the evolving needs of investors in the digital age, and is a pivotal step forward for Schroders, as we move towards our vision of delivering a composable finance ecosystem for our clients." See the Schroders release here. (Note: Please join us for our upcoming European Money Fund Symposium, which is Sept. 24-25 in Paris, France. The event includes several sessions involving tokenized money market funds, and we expect it will be a major topic of discussion.)
Yields Inch Back Down to 3.49%
Money fund yields (7-day, annualized, simple, net) were down 1 bp at 3.49% on average during the week ended Friday, August 7 (as measured by our Crane 100 Money Fund Index), after rising 3 bps the week prior. Fund yields have rebounded slightly in recent weeks, but they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) unless and until the Fed moves rates higher. Yields were 3.49% on 7/31/26, 3.47% on 6/30 and on 3/31, 3.58% on 12/31/25, 4.13% on 6/30/25 and 4.28% on average on 12/31/24. MMFs averaged 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 723), shows a 7-day yield of 3.40%, unchanged in the week through Friday. Prime Inst money fund yields were down 1 bp at 3.60% in the latest week. Government Inst MFs were unchanged at 3.48%. Treasury Inst MFs were down 1 bp at 3.47%. Treasury Retail MFs currently yield 3.24%, Government Retail MFs yield 3.21% and Prime Retail MFs yield 3.38%, Tax-exempt MF 7-day yields were down 42 bps to 1.61%. Money market mutual fund assets hit an all-time record high of $8.404 trillion on July 6, according to our Money Fund Intelligence Daily. But assets have increased $25.3 billion in the week through Friday, and they've increased by $38.2 billion in August month-to-date (through 8/7). MMF assets decreased by $61.4 billion in July, increased by $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion last August. Weighted average maturities were at 38 days for the Crane MFA and 39 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (8/7), just 159 money funds (out of 834 total) yield under 3.0% with $193.4 billion in assets, or 2.3%, while the vast majority (675) of funds yield between 3.00% and 3.99% ($8.134 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp eleven weeks prior. The latest Brokerage Sweep Intelligence, with data as of August 7, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
HSBC Merges Intm, Intm Svc Classes
A Prospectus Supplement filing for HSBC U.S. Government Money Market Fund and HSBC U.S. Treasury Money Market Fund says, "Upon the recommendation of HSBC Global Asset Management (USA) Inc. (the 'Adviser'), the Board of Trustees of HSBC Funds (the 'Trust') has approved: (i) the conversion of the outstanding Intermediary Class Shares of the HSBC U.S. Government Money Market Fund (the 'Government Fund') and the HSBC U.S. Treasury Money Market Fund (the 'Treasury Fund,' and with the Government Fund, the 'Funds') into Intermediary Service Class Shares of the same respective Fund; (ii) the termination of the Intermediary Class Shares of the Funds; and (iii) the elimination of the shareholder servicing fees for Intermediary Service Class Shares and Class P Shares of the Funds. These changes will take effect on or about September 11, 2026, or on such other date as the officers of the Trust determine (the 'Effective Date')." It tells us, "Effective immediately, the Funds will no longer sell Intermediary Class Shares to new investors or existing shareholders (except through reinvested dividends), including through exchanges into each Fund. Investors may continue to redeem shares of each Fund prior to the Effective Date." The filing adds, "As a result, effective on the Effective Date, the following changes are being made to the Prospectus and SAI: 1. All references to Intermediary Class Shares of the Government and Treasury Funds are eliminated."
ICI: MMF Assets Rebound in August
After almost breaking the $8.0 trillion barrier five weeks prior, the Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets rising $55.4 billion to $7.909 trillion. Assets fell $6.8 billion the previous week and decreased $22.6 billion the week before this. But MMF assets are still up by $757 billion, or 10.6%, over the past 52 weeks (through 8/5/26), with Institutional MMFs up $589 billion, or 13.9% and Retail MMFs up $168 billion, or 5.7%. Year-to-date in 2026, MMF assets are up by $176 billion, or 2.3%, with Institutional MMFs up $155 billion, or 3.3% and Retail MMFs up $21 billion, or 0.7%. ICI's weekly release says, "Total money market fund assets increased by $55.39 billion to $7.91 trillion for the week ended Wednesday, August 5, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $46.36 billion and prime funds increased by $7.06 billion. Tax-exempt money market funds increased by $1.97 billion.” ICI's stats show Institutional MMFs increasing $34.1 billion and Retail MMFs increasing $21.3 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.519 trillion (82.4% of all money funds), while Total Prime MMFs were $1.238 trillion (15.7%). Tax Exempt MMFs totaled $152.1 billion (1.9%). It explains, "Assets of retail money market funds increased by $21.26 billion to $3.10 trillion. Among retail funds, government money market fund assets increased by $16.01 billion to $1.97 trillion, prime money market fund assets increased by $4.54 billion to $988.81 billion, and tax-exempt fund assets increased by $708 million to $138.11 billion." Retail assets account for 39.2% of the total, and Government Retail assets make up 63.6% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $34.14 billion to $4.81 trillion. Among institutional funds, government money market fund assets increased by $30.35 billion to $4.55 trillion, prime money market fund assets increased by $2.53 billion to $249.38 billion, and tax-exempt fund assets increased by $1.27 billion to $14.01 billion." Institutional assets accounted for 60.8% of all MMF assets, with Government Institutional assets making up 94.5% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $48.9 billion to $8.338 trillion month-to-date in August (as of 8/5), assets reached an all-time high of $8.404 trillion on July 6. Assets decreased $61.4 billion in July, increased $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion last August. Note that `ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
BNY Debuts BLIQUID Tokenized MMF
A press release, "BNY Investments Launches Its First Native Blockchain Product, BLIQUID by BNY," states, "BNY Investments Dreyfus, part of BNY (BNY) ... announced the launch of BNY Dreyfus On-Chain Liquidity Fund, one of the first digitally native, SEC-registered 2a-7 money market funds. Shares are represented on-chain by BLIQUID tokens, with each share's ownership and transfers recorded on the blockchain as part of the fund's recordkeeping system." It continues, "The Fund is fueled by BNY's digital asset ecosystem, a global, scalable platform integrating tokenization, distribution, and custody to help power the future of financial markets. Built on BNY's Digital Transfer Agency capability, BLIQUID by BNY connects directly to the firm's underlying transfer agency recordkeeping infrastructure, supporting on-chain ownership records, transfer processing and reconciliation to off-chain." Stephanie Pierce, Deputy Head of BNY Investments, comments, "BLIQUID by BNY gives clients an entirely new way to put cash to work, combining the speed and efficiency of a digitally native structure with the security and reliability our clients count on. This is a meaningful step forward in how we help clients access liquidity in an increasingly digital world and demonstrates how BNY connects traditional finance with next generation market infrastructure." BNY explains, "Unlike earlier tokenized fund structures that relied on 'digital twins' of traditional shareholder records, the fund's shares are issued natively on-chain. Transactions, including mints, burns, transfers and fees, are visible and auditable on-chain, allowing investors to verify holdings and performance, and on-chain infrastructure supports the settlement and distribution of tokenized funds, reducing reliance on certain traditional processing handoffs. Peer-to-peer token transfers are available 24/7 between allow-listed wallets with subscriptions and redemptions supported in both fiat and stablecoin all within the BNY ecosystem." The release adds, "Initially at launch, BLIQUID by BNY will be available on the Ethereum and Solana blockchains, with additional networks expected over time. Eligible investors that have a digital wallet maintained for them by digital custody providers, Anchorage Digital or BitGo Bank & Trust, N.A., or directly by BNY, can invest in the fund. Consistent with the broader BNY Investments Dreyfus liquidity suite, it is anticipated that BNY’s LiquidityDirect platform will support investments in the fund, delivering the same intuitive experience, institutional scale, and rich functionality clients use today, now extended to tokenized money market funds."
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of July 31) includes Holdings information from 55 money funds (down 20 from a week ago), or $3.644 trillion (down from $4.773 trillion) of the $8.289 trillion in total money fund assets (or 44.0%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our July 13 News, "July MF Portfolio Holdings: Assets Flat; Repo Jumps, Treasuries Plunge.”) Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.685 trillion (down from $2.146 trillion a week ago), or 46.3%; Repurchase Agreements (Repo) totaling $1.292 trillion (down from $1.679 trillion a week ago), or 35.5%, and Government Agency securities totaling $420.8 billion (down from $513.1 billion a week ago), or 11.5%. Commercial Paper (CP) totaled $120.5 billion (down from $186.9 billion a week ago), or 3.3%. Certificates of Deposit (CDs) totaled $49.8 billion (down from $100.8 billion a week ago), or 1.4%. The Other category accounted for $37.5 billion or 1.0%, while VRDNs accounted for $37.9 billion or 1.0%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.685 trillion, Fixed Income Clearing Corp with $415.2B, the Federal Home Loan Bank with $262.1B, JP Morgan with $129.9B, Federal Farm Credit Bank with $96.4B, Citi with $96.4B, BNP Paribas with $81.6B, Wells Fargo with $79.1B, RBC with $70.9B and Goldman Sachs with $52.3B. The Ten Largest Funds tracked in our latest Weekly include: JPMorgan 100% US Trs MM ($342.4B), JPMorgan US Govt MM ($331.9B), Fidelity Inv MM: Govt Port ($275.4B), Goldman Sachs FS Govt ($272.6B), State Street Inst US Govt ($197.4B), Morgan Stanley Inst Liq Govt ($197.3B), Fidelity Inv MM: MM Port ($162.6B), Dreyfus Govt Cash Mgmt ($158.4B), Fidelity Inv MM: Treas Only ($134.6B) and First American Govt Oblg ($129.6B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
Money Fund Yields Retake 3.50%
Money fund yields (7-day, annualized, simple, net) were up 3 bps to 3.50% on average during the week ended Friday, July 31 (as measured by our Crane 100 Money Fund Index), after going unchanged the week prior. Fund yields have rebounded slightly in recent weeks, but they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) unless and until the Fed moves rates higher. Yields were 3.49% on 7/31/26, 3.47% on 6/30 and on 3/31, 3.58% on 12/31/25, 4.13% on 6/30/25 and 4.28% on average on 12/31/24. MMFs averaged 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 723), shows a 7-day yield of 3.40%, up 2 bps in the week through Friday. Prime Inst money fund yields were up 2 bps at 3.61% in the latest week. Government Inst MFs were up 2 bps at 3.48%. Treasury Inst MFs were up 3 bps at 3.48%. Treasury Retail MFs currently yield 3.25%, Government Retail MFs yield 3.22% and Prime Retail MFs yield 3.38%, Tax-exempt MF 7-day yields were down 14 bps to 2.13%. Money market mutual fund assets hit an all-time record high of $8.404 trillion on July 6, according to our Money Fund Intelligence Daily. But assets have decreased $809 million in the week through Friday, and they've decreased by $61.4 billion in July month-to-date (through 7/31). MMF assets increased by $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion last July. Weighted average maturities were at 38 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (7/31), just 158 money funds (out of 834 total) yield under 3.0% with $190.5 billion in assets, or 2.3%, while the vast majority (676) of funds yield between 3.00% and 3.99% ($8.098 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp ten weeks prior. The latest Brokerage Sweep Intelligence, with data as of July 31, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
Barron's Likes Short Treasury ETFs
This weekend's Barron's tells investors to favor long-term Treasury bills over money market funds. The article, "Look What the Fed Did to the Bond Market This Week," tells us, "The Federal Reserve may get around to raising its short-term interest rate target later this year, but short-term bond yields already reflect that eventuality. Investors and savers can boost their yields without adding much risk by shifting out of money-market funds. But to what, exactly? Extending to longer-term securities adds significant risks without commensurate returns.... Still, there are some bargains to be had—namely among shorter-term Treasuries." It explains, "Given the futures market's forecast—which is probably the best guide, given Warsh has eschewed forward guidance -- the two-year Treasury at about 4.25% already reflects the likelihood of two Fed hikes later this year and early 2027. That yield also represents a meaningful pickup from the three-month Treasury bill, at 3.75%, and money-market funds such as the Fidelity Government Money Market fund, with a seven-day SEC yield of 3.32%." The Barron's piece adds, "A number of low-cost exchange-traded funds cover the one-to-three-year corner of the Treasury market. Among the largest are Vanguard Short-Term Treasury, iShares 1-3 Year Treasury Bond, Schwab Short-Term Treasury, and State Street SPDR Portfolio Short Term Treasury. They sport ultralow expense ratios of three basis points (0.03%), except the iShares ETF, which charges 15 basis points. At the same time, shorter-term bonds provide nearly as much yield as lengthier maturities, and with significantly lower risk from rising interest rates. (Bond prices move inversely to interest rates.) A recent report from Janus Henderson shows the U.S. Treasury 1-3 Year index (the benchmark of the aforementioned ETFs) has a duration of about two years, compared with about six years for the U.S. Aggregate Index. (Duration is a measure of a bond’s price sensitivity to interest rate changes.)"
NY Fed on Stablecoins and SVB
The Federal Reserve Bank of New York published a paper titled, "Stablecoins and (Non)Crypto Shocks: A 2026 Update." It states, "Stablecoins are digital assets whose value is pegged to that of a fiat currency, typically the U.S. dollar at a peg of $1.00 per token. In a previous blog post, we described the rapid growth of stablecoins through early 2025, highlighted changes in stablecoins' reserve-asset composition, and examined their reactions to Bitcoin price shocks. In this post, we document the growth of stablecoins since our last post. Then, we examine how shocks from outside the crypto industry can impact the composition of stablecoins' reserve assets. For our case study, we use the 2023 failure of Silicon Valley Bank (SVB) and its impact on USD Coin (USDC, issued by Circle), the second-largest stablecoin by market capitalization." The piece explains, "Since our last post in April 2025, the market capitalization of U.S. dollar stablecoins has increased by $71 billion (30 percent) to about $308 billion recently.... This period coincides with the passage of the GENIUS Act in July 2025, which established the first federal regulatory framework for payment stablecoins." It continues, "The stablecoin industry remains highly concentrated, with the two largest issuers, Tether (USDT) and USDC, accounting for over 80 percent of industry assets. The reserve composition of these stablecoins differs significantly: USDC's attested reserves consist primarily of cash and short-term U.S. government securities. In contrast, corporate bonds, gold bars, Bitcoin, secured loans, and 'other investments' accounted for nearly 24 percent of USDT's attested reserves as of December 2025." The blog says, "In prior posts, we examined the impact of positive and negative crypto price shocks on net flows into stablecoins. Here we study a complementary question: how do non-crypto shocks affect net flows into stablecoins and the composition of their reserve assets? This question is important given stablecoins' increasing interconnectedness with traditional financial markets. To answer it, we document the changes in USDC's reserve assets following SVB’s failure in March 2023. On March 11, 2023, Circle reported that approximately 8 percent of USDC's reserves were held at SVB, which had been placed into FDIC receivership the previous day. Following Circle's announcement, USDC's secondary market price dropped considerably below $1.00, and it experienced notable net outflows. In addition to these effects, the composition of the Circle Reserve Fund (CRF), a money market mutual fund (MMF) whose shares can only be purchased by Circle, changed significantly. (The CRF accounts for approximately 86 percent of USDC's reserve assets as of March 2026.)" Finally, the post adds, "Following SVB's failure in March 2023, the composition of USDC's primary reserve asset, held in an MMF, changed notably: the average maturity of its reserve assets declined significantly; its repo holdings surged and became concentrated in FICC in recent years. In addition, its direct deposits with banks shifted from a combination of GSIBs and non-GSIBs to GSIBs. Overall, the SVB event triggered a change in the type of risk held by one of the largest stablecoin issuers, away from interest-rate risk and toward counterparty risk. These changes highlight the growing interconnectedness between traditional finance and new, emerging financial technologies."
Invesco Q2'26 Talks Cash, SuperState
Invesco reported Q2'26 earnings earlier this week, and we quote the few comments involving 'cash' below. (See the earnings call transcript here.) President & CEO Andrew Schlossberg says, "Year to date, we posted record net inflows of $67 billion, or a 7% annualized organic growth rate, generated record net revenue with an increase of 17% over the same period last year.... We have launched more than 50 products this year across the Americas, EMEA, and APAC. This includes six new active ETF launches and a new partnership with SuperState, where we are now the manager of our first tokenized Treasury strategy.... Markets were supportive, driven by strong equity appreciation and improving fixed income returns, resulting in investor capital remaining in motion across the industry, albeit more narrowly focused and mindful of ongoing macroeconomic and policy uncertainty.... Net long-term inflows during the period were a record $45.1 billion, marking the 12th straight quarter of net inflows and representing annualized organic growth of nearly 9%. Additionally, we generated $13.2 billion in global liquidity inflows, ending the period with $215 billion in AUM. Altogether, we reached an AUM high water mark of $2.5 trillion." CFO Allison Dukes explains, "Net long-term asset inflows were a record $45 billion in the second quarter. Nearly a 9% annualized organic growth rate, marking the 12th consecutive quarter of net inflows. Favorable markets drove a $257 billion increase in AUM, and net flows to end the money market funds totaled $17 billion for the quarter. AUM at the end of the quarter reached a record high of $2.5 trillion, a 14% increase over the first quarter, and 23% higher than the second quarter of last year. Average long-term AUM was $2.1 trillion, a 7% increase over last quarter and 58% greater than last year." During the Q&A, they were asked about how they won the SuperState deal. Schlossberg answers, "We have a $220 billion global liquidity franchise. We're managing funds for decades. We do have a lot of strength and capability in the liquidity side, maybe it starts with that. The second thing is that we've made a commitment to innovate through digital assets and through establishing partnerships. Having the opportunity to take over that billion-dollar tokenized U.S. Treasury fund was important to us. I think because of our commitment to innovation, our long-term experience on the global liquidity side, and frankly, the vast distribution that we have around the world institutionally and the retail space, I think, created a nice combination for the two of us." On opportunities, Schlossberg adds, "The only thing I'd add is the places where we're seeing organic growth, ETFs, SMAs, fixed income at large, cash. These are all categories that scale pretty well. We're going to continue to expect to see growth in those segments." (For more, see our March 25 Crane Data News, "Invesco to Manage SuperState Tokenized USTB.")
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