Morgan Stanley’s investment management arm has introduced a new offering called “Stablecoin Reserves Portfolio,” allowing stablecoin issuers to place the reserves backing their tokens into one of the bank’s money market funds while earning interest.
The product sits within the Morgan Stanley Institutional Liquidity Funds Trust (MSNXX) and is designed to preserve capital, provide daily liquidity, and generate income while maintaining a $1 net asset value, the bank said Thursday.
“Developing innovative ways to work with stablecoin issuers is another step towards modernizing the financial infrastructure,” said Amy Oldenburg, head of digital asset strategy at the firm.
Morgan Stanley said the offering is structured to align with the Guiding and Establishing National Innovation for US Stablecoins Act, signed into law in July, which has encouraged traditional financial players such as Western Union and Zelle to expand into the stablecoin sector.
The move is part of a broader push by Morgan Stanley and other Wall Street firms into crypto markets amid rising institutional demand. On April 8, the bank launched the Morgan Stanley Bitcoin Trust (MSBT), which has attracted $172 million in net inflows since its debut.
The firm has also filed with regulators to list exchange-traded funds tied to Ether and staked Solana. Earlier, in February, it applied for a national trust banking charter with the Office of the Comptroller of the Currency, which, if approved, would allow it to offer crypto custody and facilitate transactions for clients.
Morgan Stanley noted that the fund invests in cash, short-term U.S. Treasury securities with maturities of 93 days or less, and overnight repurchase agreements backed by Treasurys. The minimum investment is set at $10 million, with a management fee of 0.15%, according to the firm’s website.
While the product is primarily aimed at stablecoin issuers, Morgan Stanley said it may also be open to other investors. The bank is one of the world’s largest investment firms, with around $6 trillion in client assets managed by roughly 16,000 financial advisors.
