NEW YORK--Even before the next phase of U.S. stablecoin regulation is fully in place, major Wall Street firms are moving to build the back-end infrastructure for the market, with Morgan Stanley Investment Management launching a government money market fund designed specifically to hold reserves backing payment stablecoins, according to PYMNTS.
The new Stablecoin Reserves Portfolio (MSNXX) is aimed at payment stablecoin issuers and is structured to align with the reserve investment requirements contemplated under the GENIUS Act, according to PYMNTS, underscoring how quickly traditional finance firms are positioning themselves to capture the reserve-management business tied to the fast-growing stablecoin market.
PYMNTS reported the fund is part of Morgan Stanley Investment Management’s Institutional Liquidity Funds platform and is designed around capital preservation, daily liquidity and a stable $1 net asset value, with holdings limited to cash, short-dated U.S. Treasuries and certain Treasury-backed overnight repurchase agreements—precisely the kinds of highly liquid assets at the center of the emerging federal framework for payment stablecoin reserves.