Morgan Stanley Investment Management has launched a government money market fund designed for stablecoin issuers to hold reserve assets in line with GENIUS Act requirements.

Dubbed the Stablecoin Reserves Portfolio (MSNXX), the fund sits inside the Morgan Stanley Institutional Liquidity Funds trust and targets payment stablecoin issuers needing an eligible investment vehicle for reserves backing their outstanding tokens.

Shares are primarily expected to be held by stablecoin issuers but may also be held by non-issuers, the asset manager said in a statement on Thursday.

According to the statement, the Stablecoin Reserves Portfolio seeks preservation of capital, daily liquidity, and maximum current income while maintaining a stable $1 net asset value. 

MSIM said the fund invests exclusively in cash, U.S. Treasury bills, notes, and bonds with remaining maturities of 93 days or less, plus certain overnight repurchase agreements collateralized by U.S. Treasury securities.

Amy Oldenburg, head of digital asset strategy at Morgan Stanley, framed the launch as part of a firmwide effort to modernize financial infrastructure. She said developing ways to work with stablecoin issuers expands access to digital investment solutions for institutional clients as markets evolve.

The fund builds on MSIM's digital assets expansion. Earlier this month, the unit debuted its first cryptocurrency exchange-traded product, the Morgan Stanley Bitcoin Trust (MSBT), which has attracted over $172 million in net inflows since launch. 

Morgan Stanley Investment Management, together with its investment advisory affiliates, had $1.9 trillion in assets under management as of March 31, 2026, per the statement.