Morgan Stanley Launches Stablecoin Reserves Fund to Meet GENIUS Act Requirements

Gate News message, April 24 — Morgan Stanley Investment Management has launched the Stablecoin Reserves Portfolio (MSNXX), a government money market fund designed for stablecoin issuers to hold reserve assets in compliance with GENIUS Act requirements. The fund, housed within the Morgan Stanley Institutional Liquidity Funds trust, targets payment stablecoin issuers seeking an eligible investment vehicle for reserves backing their outstanding tokens.

The Stablecoin Reserves Portfolio invests exclusively in cash, U.S. Treasury bills, notes, and bonds with remaining maturities of 93 days or less, plus certain overnight repurchase agreements collateralized by U.S. Treasury securities. The fund seeks to preserve capital, provide daily liquidity, and generate maximum current income while maintaining a stable $1 net asset value. While shares are primarily expected to be held by stablecoin issuers, non-issuers may also hold shares.

The launch represents part of Morgan Stanley’s broader digital assets expansion. Earlier this month, Morgan Stanley Investment Management debuted its first cryptocurrency exchange-traded product, the Morgan Stanley Bitcoin Trust (MSBT), which has attracted over $172 million in net inflows since launch. As of March 31, 2026, Morgan Stanley Investment Management and its investment advisory affiliates managed $1.9 trillion in assets under management.

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