Morgan Stanley launches a money market fund for stablecoin reserves
Morgan Stanley Investment Management has launched the Stablecoin Reserves Portfolio, a government money market fund designed to meet investment requirements under the proposed GENIUS Act for stablecoin issuers.
The fund, part of the Morgan Stanley Institutional Liquidity Funds trust with ticker MSNXX, will allow payment stablecoin issuers to invest the required reserves backing their issued stablecoins. The portfolio aims to preserve capital, provide daily liquidity, and generate yield while maintaining a stable net asset value of $1.00.
The company stated that the fund will invest in cash, U.S. Treasury securities with maturities of 93 days or less, and overnight repurchase agreements backed by Treasury securities. The shares are expected to be held primarily by stablecoin issuers but may also be purchased by other investors.
“We are pleased to offer the market a new investment solution that aims to meet the needs of stablecoin issuers,” said Fred McMullen, co-head of global liquidity at Morgan Stanley Investment Management.
The launch follows Morgan Stanley’s recent initiatives in digital assets. In April, the firm introduced the Morgan Stanley Bitcoin Trust, an exchange-traded product tracking Bitcoin performance. BNY Mellon provides custody services for the Bitcoin trust.
Earlier this year, Morgan Stanley also introduced DAP share class units of its Treasury Securities Portfolio, designed to participate in BNY’s initiative to tokenize money market funds. These shares are available via BNY’s digital platforms, with their value represented through blockchain tokenization.
As of March 31, 2026, Morgan Stanley Investment Management manages or supervises $1.9 trillion in assets.
See also: "Bitcoin ETFs See $238M Inflows, Marking Fifth Straight Day"
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