Morgan Stanley has launched its Stablecoin Reserves Portfolio, a new offering designed exclusively for stablecoin issuers. The fund requires a minimum investment of $10 million, positioning it squarely for institutional players. This move allows stablecoin issuers to deposit the cash reserves backing their digital tokens into one of the bank’s money market funds, earning interest on these assets. The portfolio is part of Morgan Stanley’s Institutional Liquidity Funds trust and holds cash, short-dated U.S. Treasury securities, and overnight repurchase agreements. This offering is structured to comply with the GENIUS Act, a federal law establishing formal rules for U.S. stablecoin issuers.
Amy Oldenburg, head of Morgan Stanley’s digital asset strategy, stated that this initiative is part of a broader effort to modernize financial infrastructure. While primarily for stablecoin issuers, the fund may also accommodate other qualified investors. This stablecoin product follows Morgan Stanley's recent expansion into digital assets, including the launch of its Bitcoin exchange-traded fund and planned offerings for Ether and Solana-tied funds. The bank also seeks regulatory approval for a national trust banking charter to directly hold and trade crypto assets for clients.