Morgan Stanley has launched a “Stablecoin Reserves Portfolio” allowing issuers to hold reserve assets in its money market fund while earning yield, marking a deeper push into digital asset infrastructure.
The offering operates through the firm’s Institutional Liquidity Funds trust (MSNXX), which targets capital preservation, daily liquidity and stable value while maintaining a $1 net asset value.
Stablecoin issuers must allocate at least $10 million into the fund to participate, positioning the product as an institutional-grade solution aligned with emerging regulatory requirements.
“Developing innovative ways to work with stablecoin issuers is another step towards modernising the financial infrastructure,”
Said Morgan Stanley head of digital asset strategy, Amy Oldenburg.
The launch is designed to comply with the Guiding and Establishing National Innovation for US Stablecoins Act, as traditional finance firms expand into the sector, and following the announcement Morgan Stanley shares were unchanged at $XX.
The fund invests in cash, short-term US Treasuries with maturities of 93 days or less and overnight repurchase agreements, charging a 0.15% management fee while remaining open to select non-issuer investors.
The move follows a series of crypto initiatives by Morgan Stanley, including its Bitcoin trust launch, ETF filings tied to Ether and Solana, and a bid for a national trust banking charter to expand custody and trading capabilities.
At the time of reporting, Bitcoin price was $77,726.58.