Morgan Stanley Launches Stablecoin Reserves Portfolio Targeting Issuers on April 24

Morgan Stanley Investment Management launched the Stablecoin Reserves Portfolio on April 24, 2026, positioning the fund as a regulated option for stablecoin issuers to hold reserve assets. CoinDesk reported that the portfolio, a government money market fund with the ticker symbol MSNXX, targets a constant $1 net asset value and offers daily liquidity. U.S.

Treasury bills and repo agreements backed by government securities. " CoinDesk noted that the stablecoin market capitalization has reached $316 billion, with dollar-pegged stablecoins such as Tether and USDC comprising the bulk of this total. U.S.

Stablecoins Act, moves through Congress as of April 24, 2026. CoinDesk reported that this legislation, if passed, would require stablecoin issuers to back tokens with high-quality liquid reserves held in regulated vehicles. Morgan Stanley's fund is designed to meet such needs by providing a low-risk place for reserves, focusing on capital preservation through investments in short-term, highly liquid government instruments.

In a related development, Morgan Stanley Investment Management launched the Morgan Stanley Bitcoin Trust (MSBT), a cryptocurrency exchange-traded product designed to track bitcoin. CoinDesk reported that BNY Mellon provides custody and fund administration services for MSBT.

Additionally, Morgan Stanley Investment Management introduced tokenized DAP Class shares of its Institutional Liquidity Funds Treasury Securities Portfolio in partnership with BNY, enabling blockchain-based mirrored records while BNY retains official books and records.

CoinDesk described the Stablecoin Reserves Portfolio as aimed at issuers needing a safe, regulated storage for reserves backing tokenized fiat currencies, with the fund differing from routine funds by avoiding daily value fluctuations. The expansion into stablecoins reflects the sector's growth beyond crypto trading into areas like remittances and cross-border transfers, according to details in CoinDesk's reporting.

Stablecoins require issuers to hold equivalent fiat reserves for each token, and Morgan Stanley's fund offers a venue for such holdings in Treasury bills and repos, which provide yields considered close to risk-free.

The portfolio's daily liquidity allows withdrawals on any business day without penalties, supporting operational needs of issuers amid the market's $316 billion capitalization dominated by Tether and USDC.