The American bank Morgan Stanley took another step in the digital assets sector by launching yesterday, April 23, 2026, the stablecoin reserve portfolio (whose ticker is MSNXX), a financial vehicle integrated into the Morgan Stanley Institutional Liquidity Funds.
This movement was executed through Morgan Stanley Investment Management, the asset management division of the financial institution, reported the bank. The new government money market fund has been designed to strictly comply with the requirements of the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act).
The legislation, approved in 2025, established the first federal framework for stablecoins in the United States, as reported by CriptoNoticias. The regulations require issuers of digital assets to have 1:1 support in high-quality liquid assets, in addition to periodic audits and supervision by authorized entities.
In this context, the MSNXX fund offers issuers an “eligible” investment option where they can deposit the reserves backing their stablecoins in circulation legally.
According to how the fund works, when a company has operational stablecoins, it can take the backup capital and invest it to prevent the money from remaining static. By placing these funds in Morgan Stanley’s product, issuers ensure their capital is in a regulated and liquid environment while generating returns through interest.
In technical terms, the MSNXX fund seeks to preserve capital and maintain daily liquidity while attempting to “maximize current income.” The main objective is to maintain a stable net asset value of USD 1.00which ensures that each dollar invested maintains its face value against the parity of the backed stablecoin.
To achieve this stability, The portfolio invests in US Treasury bills, notes and bonds with remaining maturities of 93 days or less, plus Treasury-guaranteed overnight repurchase agreements.
Fred McMullen, co-head of Global Liquidity at Morgan Stanley Investment Management, justified the creation of this financial instrument given the maturation of the stablecoin sector. “The significant increase in stablecoin issuers, as well as the growing number of assets in these cryptocurrencies, represents a constantly evolving market segment with great potential for future growth,” he stated.