Morningstar

Morgan Stanley Launches Reserves Portfolio for Stablecoin Issuers

Provided by Dow Jones

By Elias Schisgall 




  Morgan Stanley Investment Management launched a Stablecoin Reserves Portfolio to help stablecoin issuers align with a new federal law laying out a framework for stablecoin regulation. 



  The fund, which invests in cash and U.S. treasuries with maturities of 93 days or less, is designed to act as a money market fund option where stablecoin issues can invest their required reserves that back up their outstanding payment stablecoins. 



  The fund is part of the Morgan Stanley Institutional Liquidity Funds trust. It will seek to preserve capital, daily liquidity, and maximum current income to maintain a stable net asset value of $1.00, the bank said Thursday. 



  The move comes in response to the Guiding and Establishing National Innovation for U.S. Stablecoins, or GENIUS Act, a law signed last summer requiring stablecoin issuers to underpin the value of their digital tokens with cash and other safe assets. 



  "We are pleased to deliver a new investment solution to the marketplace that seeks to address the needs of stablecoin issuers," MSIM's co-head of global liquidity, Fred McMullen, said Thursday. "The significant increase in stablecoin issuers as well as the growing number of assets held in stablecoins represents an evolving portion of the marketplace that is ripe for future growth." 





  Write to Elias Schisgall at elias.schisgall@wsj.com 





  (END) Dow Jones Newswires



  April 23, 2026 17:07 ET (21:07 GMT)


Copyright (c) 2026 Dow Jones & Company, Inc.
  

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