Morgan Stanley debuts money market fund targeting stablecoin reserve market

Morgan Stanley Investment Management has launched the Stablecoin Reserves Portfolio (MSNXX), a money market fund created to help stablecoin issuers meet reserve requirements under the GENIUS Act.

The fund focuses on preserving capital, ensuring daily liquidity, and maintaining a stable $1 NAV, investing in cash, short-term U.S. Treasuries, and overnight repurchase agreements backed by government securities.

The product is part of Morgan Stanley’s effort to meet rising demand from stablecoin issuers and expand its institutional digital asset infrastructure.

The firm emphasizes that stablecoins represent a rapidly growing segment of the financial system, and the new fund is intended to modernize reserve management while improving institutional client access to compliant liquidity solutions.

The fund adds to MSIM’s expanding digital asset strategy, which includes its Bitcoin ETP, the Morgan Stanley Bitcoin Trust (MSBT), and tokenization-linked money market initiatives developed with BNY.

As of April 23, the MSBT fund’s assets under management stood at approximately $180 million, representing a total holding of 2,334 Bitcoin.