Morgan Stanley’s investment management division has launched the Stablecoin Reserve Portfolio. This is a service that allows stablecoin issuers to earn interest by depositing the reserves backing their stablecoins in one of the bank’s money market funds.
The offering is part of the Morgan Stanley Institutional Liquidity Fund Trust (MSNXX) and is intended to preserve capital, provide daily liquidity and distribute income while maintaining a net asset value of $1, Morgan Stanley said. said on Thursday.
“Developing innovative ways to work with stablecoin issuers is another step toward modernizing financial infrastructure,” said Amy Oldenburg, head of digital asset strategy at Morgan Stanley.
The bank said the proposal aims to comply with the National Innovation Guidance and Establishment Act for U.S. Stablecoins (GENIUS Act). The law was signed in July and is the framework that has led several TradFi payment service providers, including Western Union and Zelle, to expand into the stablecoin space.
Morgan Stanley is one of several wall street companies In order to meet the growing demand of institutional customers, we have recently entered the virtual currency market aggressively.
On April 8th, Morgan Stanley Morgan Stanley Bitcoin Trust (MSBT). Net inflows were $172 million Since its launch.
It also filed documents with U.S. securities regulators to list its Ether (ETH) and staking Solana (SOL) exchange-traded funds.
Morgan Stanley also filed in February. National Trust Bank Charter with the Office of the Comptroller of the Currency. Authorization allows us to provide cryptocurrency storage and perform purchases, exchanges, and transfers on behalf of our customers.
Morgan Stanley products are open to other investors
Morgan Stanley noted that money market funds invest in cash, U.S. Treasury securities with maturities of 93 days or less, and overnight cash forward contracts backed by U.S. Treasury securities.
data Investors must invest a minimum of $10 million in MSNXX, and the management fee is 0.15%, according to Morgan Stanley’s website.
It said the fund’s shares are expected to be primarily held by stablecoin issuers, but could also be available to other investors.
Morgan Stanley is one of the world’s largest investment banks, with approximately $16,000 of financial advisors managing more than $6 trillion worth of client assets.
