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Morgan Stanley Launches Money Market Fund for Stablecoin Reserves

The fund gives issuers a compliant home for required reserves under the federal stablecoin law.

Overview

  • MSIM’s Stablecoin Reserves Portfolio (MSNXX), which launched Thursday, April 23, holds cash, U.S. Treasuries maturing in 93 days or less and overnight repos, and targets a stable $1 net asset value with daily liquidity.
  • The product is geared to stablecoin issuers but allows other institutional investors, with a reported $10 million minimum and a roughly 0.15% management fee.
  • The design aligns with the GENIUS Act, which requires 1:1 reserves in high‑quality liquid assets and caps maturities at 93 days to curb liquidity mismatch risk that can fuel runs.
  • Morgan Stanley is vying for mandated reserve flows against heavyweight rivals, with reporting noting Circle’s use of a BlackRock-managed fund and industry moves by firms like WisdomTree.
  • Coverage indicates the fund opened with about $1 million in assets as Morgan Stanley extends a broader digital-asset push that includes a new Bitcoin trust, tokenized money market share classes, and a national trust charter application.