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Morgan Stanley Launches Money Market Fund for Stablecoin Reserves

The move positions the bank to win regulated reserve mandates created by the GENIUS Act.

Overview

  • Morgan Stanley Investment Management, which launched the Stablecoin Reserves Portfolio on Thursday, listed the fund under ticker MSNXX inside its Institutional Liquidity Funds trust.
  • The portfolio invests only in cash, U.S. Treasuries with 93 days or less to maturity, and overnight repos backed by Treasuries to fit GENIUS Act reserve rules.
  • It targets a stable $1 share price with daily liquidity, though the NAV is not guaranteed and the shares are not FDIC insured.
  • Entry requires a $10 million minimum and a 0.15% management fee, and the fund is also open to other institutional investors beyond stablecoin issuers.
  • The move builds on Morgan Stanley’s Bitcoin trust and tokenized fund share work with BNY Mellon and puts it in direct competition with BlackRock, which already manages some issuers’ reserves.