American bank Morgan Stanley took a new step in the digital asset sector yesterday, April 23, 2026, with the launch of the Stablecoin Reserve Portfolio (ticker: MSNXX), a financial instrument integrated into the Morgan Stanley Institutional Liquidity Fund.
The move was carried out through Morgan Stanley Investment Management, the financial institution’s asset management arm, the bank said in a report. The new Government Money Market Fund is designed to strictly comply with the requirements of the National Innovation Guidance and Establishment Act for U.S. Stablecoins (GENIUS Act).
As reported by CriptoNoticias, the bill, approved in 2025, established the first federal framework for stablecoins in the United States. The regulation requires issuers of digital assets to receive one-on-one support for high-quality liquid assets, in addition to regular audits and oversight by authorized institutions.
In this regard, the MSNXX Fund: Provides issuers with a “qualified” investment option where they can deposit reserves to back their stablecoins It is distributed legally.
According to the structure of the fund, if a company owns an operational stablecoin, it can acquire and invest back-up funds so that the funds do not become stagnant. By incorporating these funds into Morgan Stanley products, issuers generate income through interest while ensuring their capital is in a regulated and liquid environment.
In technical terms, the MSNXX Fund seeks to “maximize current income” while preserving capital and maintaining daily liquidity. The main goal is to maintain a stable net asset value of $1.00.This ensures that each dollar invested maintains its face value against the equivalency of the underlying stablecoin.
To achieve this stability, The Portfolio invests in U.S. Treasury bills, paper money, and bonds. This also includes overnight repurchase contracts with remaining maturities of 93 days or less and guaranteed by the Treasury.
Fred McMullen, co-head of global liquidity at Morgan Stanley Investment Management, justified the creation of this financial product given the maturity of the stablecoin sector. “The significant increase in stablecoin issuers and the increasing number of assets in these cryptocurrencies represent a continuously evolving market segment with great potential for future growth,” he said.
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