A minimum investment of $10 million is required to participate, and the fund carries a 0.15% management fee.
Crypto News
Morgan Stanley's investment management division has launched a new product called the Stablecoin Reserves Portfolio, giving stablecoin issuers a way to park their reserve assets inside one of the bank's money market funds while earning interest.
The offering sits within the Morgan Stanley Institutional Liquidity Funds trust, known as MSNXX, which is structured to preserve capital, maintain a $1 net asset value, and provide daily liquidity. A minimum investment of $10 million is required to participate, and the fund carries a 0.15% management fee.
The fund invests in cash, U.S. Treasury securities with maturities of 93 days or less, and overnight repurchase agreements backed by Treasury securities. Morgan Stanley said shares are expected to be held primarily by stablecoin issuers but may also be available to other investors.
Amy Oldenburg, head of Morgan Stanley's digital asset strategy, said developing new ways to work with stablecoin issuers is "another step towards modernizing the financial infrastructure." The bank said the product is designed to comply with the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act, which was signed into law in July.
The legislation has prompted several traditional finance payment providers, including Western Union and Zelle, to move into the stablecoin market. Morgan Stanley is among a group of Wall Street firms that have accelerated their push into crypto in recent months to meet growing institutional client demand.
The bank launched the Morgan Stanley Bitcoin Trust on April 8, which has recorded $172 million in net inflows since its debut. Morgan Stanley has also filed to list an $ETH and staked $SOL exchange-traded fund with U.S. securities regulators.
In February, the firm applied for a national trust banking charter with the Office of the Comptroller of the Currency, a move that, if approved, would allow it to offer crypto custody services and execute purchases, swaps, and transfers for clients. Morgan Stanley manages more than $6 trillion in client assets through roughly 16,000 financial advisers worldwide.
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