Morgan Stanley Investment Management launched the Stablecoin Reserves Portfolio (MSNXX), a new governmental money market fund designed to align with the reserve investment requirements established by the GENIUS Act, the U.S. regulation governing the issuance of payment stablecoins. The fund allows stablecoin issuers to invest their mandatory reserves in an eligible vehicle under said legislation.
The portfolio seeks to provide capital preservation, daily liquidity, and maximum current yield, maintaining a stable net asset value of one dollar. It invests exclusively in U.S. Treasury cash, bills, notes, and bonds with residual maturities of up to 93 days, along with certain overnight repurchase agreements backed by Treasury securities.
Fred McMullen, co-head of Global Liquidity at Morgan Stanley, highlighted the sustained growth in the number of issuers and in the volume of stablecoin-backed assets as the driving force behind the initiative. For her part, Amy Oldenburg, head of Digital Asset Strategy, underscored that developing solutions for stablecoin issuers is part of a plan to modernize institutional financial infrastructure.
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