Morgan Stanley Launches MSNXX Stablecoin Reserves Fund To Meet GENIUS Act Rules

Morgan Stanley has launched the MSILF Stablecoin Reserves Portfolio, a government money market fund built to hold issuer reserves under the GENIUS Act.

Morgan Stanley Debuts MSNXX Reserves Fund

Morgan Stanley Investment Management rolled out the product under the ticker MSNXX on Thursday, according to CoinGape. It sits inside the firm's Institutional Liquidity Funds trust.

The portfolio is aligned with federal reserve rules for payment stablecoin issuers. Issuers such as Tether, Circle, and World Liberty Financial can park reserves in the fund.

The fund holds cash, U.S. Treasury bills with maturities of 93 days or less, and overnight repurchase agreements, while targeting a stable $1 net asset value.

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McMullen Signals Stablecoin Market Growth

Fred McMullen, co-head of Global Liquidity at Morgan Stanley Investment Management, said the rise of stablecoin issuers represents an evolving part of the marketplace that is ripe for growth.

The entry adds reserve custody infrastructure that compliant issuers previously lacked.

Morgan Stanley earlier this month debuted its spot Bitcoin(BTC)ETF under the ticker MSBT, the first spot BTC fund issued by a major U.S. bank. The 0.14% fee product, the lowest in the category, drew more than $100 million in inflows during its opening week. That made MSBT the firm's strongest ETF debut to date.

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