From Bitcoin ETFs to Stablecoin Reserves: Morgan Stanley Goes All In on Crypto

TLDR

• Morgan Stanley has launched the “Stablecoin Reserves Portfolio,” a money market fund for stablecoin issuers
• Issuers must invest a minimum of $10 million into the fund (ticker: MSNXX)
• The fund invests in cash, US Treasury securities, and overnight repurchase agreements
• The offering is designed to comply with the GENIUS Act stablecoin legislation
• Morgan Stanley manages $1.9 trillion in assets and has been expanding aggressively into crypto

Morgan Stanley Investment Management has launched a new money market fund called the “Stablecoin Reserves Portfolio.” The fund lets stablecoin issuers store the reserves that back their digital currencies while earning interest.

The fund is part of the Morgan Stanley Institutional Liquidity Funds trust, which trades under the ticker MSNXX. It targets a stable $1.00 net asset value and offers daily liquidity.

Stablecoin issuers need to put in at least $10 million to access the fund. The management fee is 0.15%.

The fund holds cash, US Treasury securities with maturities of 93 days or less, and overnight repurchase agreements backed by Treasury securities. These are low-risk, short-term instruments.

Morgan Stanley says the fund is primarily aimed at stablecoin issuers but may also be available to other investors.

The launch is tied to the GENIUS Act, a stablecoin regulatory framework signed into law in July. The law set reserve requirements for stablecoin issuers, creating demand for compliant investment products like this one.

Following the GENIUS Act, several traditional finance companies including Western Union and Zelle expanded into the stablecoin space.

Morgan Stanley’s Broader Crypto Push

This fund is part of a wider push by Morgan Stanley into digital assets. In April, the firm launched the Morgan Stanley Bitcoin Trust, an exchange-traded product that tracks bitcoin performance. The trust has taken in $172 million in net inflows since launch.

BNY provides custody services for that bitcoin trust.

Earlier this year, Morgan Stanley also introduced DAP Class shares of its Treasury Securities Portfolio. These shares are designed to work with BNY’s money market fund tokenization platform, using blockchain to represent value.

Morgan Stanley has also filed paperwork to list an Ether and staked Solana exchange-traded fund with US regulators.

Regulatory and Institutional Context

In February, Morgan Stanley filed for a national trust banking charter with the Office of the Comptroller of the Currency. If approved, the bank could offer crypto custody and handle purchases, swaps, and transfers for clients.

Morgan Stanley Investment Management oversees $1.9 trillion in assets under management as of March 31, 2026. The broader firm has roughly 16,000 financial advisers managing more than $6 trillion in client assets.

The Stablecoin Reserves Portfolio launched on April 23, 2026.

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