Morgan Stanley launches stablecoin offering through money market fund

Stablecoin issuers must invest a minimum of $10 million into Morgan Stanley’s money market fund, MSNXX, to access the stablecoin reserve offering.

Morgan Stanley’s investment management arm has launched “Stablecoin Reserves Portfolio,” an offering that allows stablecoin issuers to park the reserves backing their stablecoins in one of the bank's money market funds while earning interest.

The offering is part of the Morgan Stanley Institutional Liquidity Funds trust (MSNXX), which aims to preserve capital, provide daily liquidity and distribute income while maintaining a $1 net asset value, Morgan Stanley said on Thursday.

“Developing innovative ways to work with stablecoin issuers is another step towards modernizing the financial infrastructure,” said Amy Oldenburg, head of Morgan Stanley’s digital asset strategy.

The bank said the offering seeks to comply with the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act), a framework that was signed into law in July, which led several TradFi payment service providers like Western Union and Zelle to expand into the stablecoin space.

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