Morgan Stanley launches stablecoin reserves money market fund

Morgan Stanley Investment Management launched the Stablecoin Reserves Portfolio (MSNXX), a government money market fund that offers an eligible vehicle for payment stablecoin issuers to hold reserves that meet GENIUS Act requirements. The fund is part of the Morgan Stanley Institutional Liquidity Funds trust. Shares are expected to be held primarily by stablecoin issuers, though non-issuers may also invest.

The portfolio aims to preserve capital, provide daily liquidity and seek maximum current income while maintaining a stable $1 net asset value. It will invest only in cash, U.S. Treasury bills, notes and bonds with remaining maturities of 93 days or less, and in certain overnight repurchase agreements collateralized by U.S. Treasuries.

The fund focuses on very short-term Treasury instruments and overnight repurchase agreements to limit credit and liquidity risk and provide a cash-equivalent option for issuers to hold assets that back their tokens.

“Developing ways to work with stablecoin issuers expands access to digital investment solutions for institutional clients as markets evolve,” Amy Oldenburg, head of digital asset strategy at Morgan Stanley.

The launch follows Morgan Stanley Investment Management's recent expansion into digital assets. Earlier this month the unit launched the Morgan Stanley Bitcoin Trust (MSBT), which has drawn more than $172 million in net inflows since debut. Morgan Stanley Investment Management and its investment advisory affiliates reported $1.9 trillion in assets under management as of March 31, 2026.