Morgan Stanley Launches Stablecoin Reserves Fund

Morgan Stanley launched a new money market fund on April 23, 2026, designed specifically for stablecoin issuers to manage their reserves in compliance with U.S. regulations. The Stablecoin Reserves Portfolio, part of the firm's Institutional Liquidity Funds trust and trading under the ticker MSNXX, targets a stable net asset value of $1 per share while providing daily liquidity and income generation.

The fund invests exclusively in low-risk assets, including cash, U.S. Treasury securities with maturities of 93 days or less, and overnight repurchase agreements backed by government securities. Stablecoin issuers must invest a minimum of $10 million to participate, with a management fee of 0.15 percent. Although primarily aimed at issuers backing digital dollars on a 1:1 basis, the product is open to other institutional investors. This structure allows issuers to earn yield on reserves without sacrificing capital preservation or quick access to funds, addressing the need for high-quality liquid assets amid growing regulatory demands.

The launch aligns closely with the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act, which was signed...