Morgan Stanley’s investment division is launching a new money market fund designed for stablecoin issuers and aligned with U.S. regulatory requirements.
Morgan Stanley Investment Management (MSIM) announced the launch of the Stablecoin Reserves Portfolio (MSNXX), a specialized money market fund created to hold reserves backing the issuance of payment stablecoins under the requirements of the GENIUS Act.
The new tool is focused on capital preservation, daily liquidity, and maximizing current income while maintaining a net asset value (NAV) of $1. The fund is part of the Morgan Stanley Institutional Liquidity Funds lineup and invests exclusively in cash, U.S. Treasuries with maturities of up to 93 days, and repos collateralized by government securities or cash.
According to Fred McMullen, Co-Head of Global Liquidity at Morgan Stanley Investment Management, the launch reflects the growth of the stablecoin segment, whose market cap is increasing alongside a rising number of issuers. He also noted that developing specialized investment solutions for this market is becoming a necessary component of financial infrastructure.
As of March 31, 2026, Morgan Stanley Investment Management manages $1.9 trillion in assets. The firm views the launch of new digital asset-related products as part of a long-term strategy aimed at adapting to the transformation of financial markets.
Previously, Morgan Stanley announced plans to soon enable crypto trading for retail clients through its E*TRADE division and initiated the rollout of instant cross-border settlement capabilities for FX transactions for its corporate and institutional clients.
