Morgan Stanley launches its first GENIUS Act-compliant stablecoin reserve fund MSNXX: annual fee 0.15%, minimum $10,000,000

Morgan Stanley Investment Management formally launched the Stablecoin Reserves Portfolio (ticker: MSNXX) on 4/23. This is the first government money market fund designed by a top-tier asset manager on Wall Street specifically for stablecoin issuers. The fund was established on 4/16, with an operational start date of 4/23, clearly aligning with the requirements of the U.S. 《GENIUS Act》 for reserve assets for payment-type stablecoins.

Fund basic structure

Item Content Fund ticker MSNXX (Stablecoin Reserves Portfolio) Product platform Morgan Stanley Institutional Liquidity Funds（MSILF） Target NAV Fixed at 1.00 US dollars Investment targets Cash, U.S. Treasury bills and Treasury bonds with maturities within 93 days, overnight repurchase agreements (backed by U.S. Treasuries or cash) Management fee Annual fee 0.15% Minimum investment threshold 10 million US dollars (for stablecoin issuers’ identity)

Why set up this fund: GENIUS Act compliance requirements

The 《GENIUS Act》 (Guiding and Establishing National Innovation for U.S. Stablecoins Act) establishes the category of reserve assets for U.S. payment-type stablecoin issuers—only cash, short-term U.S. Treasury debt, and assets that meet strict quality and maturity conditions may be held. This has transformed stablecoin issuers’ reserve management from the previously relatively flexible “self-custody” approach into a “must follow specific compliant product structure.”

Morgan Stanley’s entry point is precisely this—not to come in and issue its own stablecoin, but to become the “back-office asset manager for stablecoin issuers,” incorporating stablecoin providers like USDC and USDT into its MSILF platform’s compliant liquidity products. In effect, it builds an institutional channel between the capital pool of crypto stablecoins and the traditional U.S. short-term Treasuries market.

Industry signals: the launch of institutional stablecoin infrastructure

This is the second most important policy-level move, following this week’s BIS classification of large crypto exchanges as financial intermediaries. BIS qualitatively identified MCI risk from the regulatory perspective, while Morgan Stanley proposed a compliant reserve asset management solution from the service supply side—two lines moving in sync, pointing to the same conclusion: stablecoin infrastructure is gradually being brought into alignment with traditional finance.

For readers in Taiwan and the broader Asia-Pacific region, this also means that in the future, the reserve structure of stablecoins like USDC and USDT will be more deeply tied to the U.S. government money market fund framework. The issuer credit-risk structure and its linkage to the U.S. interest-rate environment will be further strengthened. Please refer to the 2026 stablecoin complete guide for the relevant regulatory context.

Other tracking points

Whether major stablecoin issuers such as Circle, Paxos, and Tether will adopt this fund as a reserve allocation

Whether competitors such as BlackRock and Fidelity will follow up by launching similar products

Whether the 0.15% management fee will become a new industry standard

Whether it will expand to international stablecoins (JPYC, EURC, etc.)

This article about Morgan Stanley launching its first GENIUS Act-compliant stablecoin reserves fund, MSNXX: annual fee 0.15%, threshold 10 million US dollars, first appeared on Chain News ABMedia.