The fund aims to preserve capital, provide daily liquidity, and maintain a $1 net asset value. It is structured to align with the GENIUS Act, the new US stablecoin regulatory framework. The portfolio is also open to other investors, buut requires a $10 million minimum investment.
Morgan Stanley Unveils Stablecoin Reserve
Morgan Stanley launched a new investment product that is designed specifically for stablecoin issuers. The firm’s investment management division introduced the Stablecoin Reserves Portfolio, an offering that allows companies issuing stablecoins to place the reserves backing their tokens into one of Morgan Stanley’s money market funds while earning interest.
The new product is part of the Morgan Stanley Institutional Liquidity Funds trust, which uses the ticker MSNXX. According to the bank, the fund is structured to preserve capital, provide daily liquidity, and generate income for investors while maintaining a stable net asset value of $1 per share. These features are especially important for stablecoin issuers, who need reserve assets that are secure, liquid, and dependable enough to support tokens pegged to fiat currencies like the US dollar.
Announcement from Morgan Stanley
Morgan Stanley said the offering is designed to align with the recently enacted Guiding and Establishing National Innovation for US Stablecoins Act, commonly known as the GENIUS Act. This legislation was signed into law in July, and created a regulatory framework for stablecoins in the United States.
Since its approval, several traditional payment providers, including Western Union and Zelle, have increased their involvement in the stablecoin sector. Morgan Stanley’s latest launch can be seen as part of this shift.
The bank’s head of digital asset strategy, Amy Oldenburg, described the initiative as another step toward modernizing financial infrastructure. Her statement highlights how major institutions now increasingly view blockchain technology and tokenized finance as part of the future of global payments and asset management.
Morgan Stanley has been expanding aggressively into crypto-related services over the past few months. Earlier in April, it introduced the Morgan Stanley Bitcoin Trust, which attracted $30+ million inflows on its launch day. The firm also submitted filings with US regulators to list exchange-traded funds tied to Ethereum and staked Solana.
MSBT ETF flows (Source: Farside Investors)
In addition, Morgan Stanley applied for a national trust banking charter in February, which, if approved, would allow it to provide crypto custody services and facilitate digital asset transactions for clients.
The new Stablecoin Reserves Portfolio is not limited only to stablecoin issuers. Morgan Stanley explained that other investors may also be able to access the fund. However, participation requires a minimum investment of $10 million and includes a management fee of 0.15%.
The fund invests in cash, short-term US Treasury securities with maturities of 93 days or less, and overnight repurchase agreements backed by Treasury assets.
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