Morgan Stanley Launches Stablecoin Reserve Product Offering Yield Through MMF

Source

YM Lee

Summary

Morgan Stanley Investment Management launched the Stablecoin Reserves Portfolio, allowing stablecoin issuers to place reserves in the money market fund (MSNXX) and earn interest income.
The product was designed to reflect the GENIUS Act and seeks to maintain a $1 NAV while investing in cash, U.S. Treasuries, and Treasury-backed repurchase agreements.
The product is also open to individual investors with a minimum investment of $10 million and a management fee of about 0.15%%, while Morgan Stanley is accelerating its push into crypto through the launch of MSBT and a review of crypto custody services.

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Morgan Stanley is expanding its push into digital assets with a reserve management product for stablecoin issuers.

Cointelegraph reported on April 23 that Morgan Stanley Investment Management launched the Stablecoin Reserves Portfolio. The product allows stablecoin issuers to place reserves in Morgan Stanley money market fund MSNXX and earn interest.

MSNXX is designed to preserve principal, provide daily liquidity and maintain a $1 net asset value. It invests in cash, U.S. Treasuries with maturities of 93 days or less, and Treasury-backed repurchase agreements.

The product was structured to reflect the GENIUS Act, the stablecoin regulatory framework. Since the law was enacted in July, it has helped spur traditional payments companies including Western Union and Zelle to enter the stablecoin market.

"This new way of working with stablecoin issuers is a step toward modernizing financial infrastructure," Amy Oldenburg, Morgan Stanley's head of digital asset strategy, said.

The product is aimed primarily at stablecoin issuers, but it is also open to individual investors. The minimum investment is $10 million and the management fee is about 0.15%.

Morgan Stanley has been accelerating its expansion into crypto. Earlier this month, it launched the bitcoin investment product MSBT, which attracted about $172 million. The firm is also pursuing listings for Ethereum and staked Solana ETFs.

Morgan Stanley has also applied to the Office of the Comptroller of the Currency for a trust bank charter as it weighs offering crypto custody and trading services.