Morgan Stanley Investment Management (MSIM) has launched a money market fund (MMF) targeting stablecoin issuers, the Stablecoin Reserves Portfolio (MSNXX). The assets are those required by the GENIUS Act, so Treasuries with a maturity of less than 93 days, overnight repo and cash.
“Creating opportunities for all client segments as markets evolve will make the next phase of finance possible and more broadly accessible,” said Amy Oldenburg, head of Digital Asset Strategy for Morgan Stanley.
Morgan Stanley is not the first asset manager to launch a conventional Treasury MMF targeting stablecoin issuers. We’ll explore the structures adopted by conventional issuances targeting stablecoin issuers, whether this impacts other funds in potential stablecoin run risks, and possible reasons for the varied take up experience of both conventional funds and tokenized MMFs.
MSNXX is part of the Morgan Stanley Institutional Liquidity Funds trust which is used for the issuance of multiple funds totaling $322 billion in assets under management. This sort of structure usually legally ringfences the assets of each fund from one another. But there are two notable points.
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