Investing.com -- Morgan Stanley Investment Management has launched the Stablecoin Reserves Portfolio, a government money market fund designed to meet investment requirements under the proposed GENIUS Act for stablecoin issuers.

The fund, part of the Morgan Stanley Institutional Liquidity Funds trust with ticker MSNXX, will allow payment stablecoin issuers to invest required reserves that back their outstanding stablecoins. The portfolio aims to preserve capital, provide daily liquidity and generate income while maintaining a stable $1.00 net asset value.

The company said that the fund invests in cash, U.S. Treasury securities with maturities of 93 days or less, and overnight repurchase agreements backed by Treasury securities. Shares are expected to be held primarily by stablecoin issuers but may also be purchased by other investors.

"We are pleased to deliver a new investment solution to the marketplace that seeks to address the needs of stablecoin issuers," said Fred McMullen, co-head of Global Liquidity at Morgan Stanley Investment Management.

The launch follows Morgan Stanley’s recent digital asset initiatives. In April, the firm introduced the Morgan Stanley Bitcoin Trust (MSBT), an exchange-traded product tracking bitcoin performance. BNY (NYSE: BK) provides custody services for the bitcoin trust.

Earlier this year, Morgan Stanley introduced DAP Class shares of its Treasury Securities Portfolio, designed to participate in BNY’s money market fund tokenization initiative. These shares are available through BNY’s digital platforms with corresponding value represented through blockchain tokenization.

Morgan Stanley Investment Management oversees $1.9 trillion in assets under management or supervision as of March 31, 2026.