Morgan Stanley Launches MSNXX Stablecoin Reserve Fund to Target Compliance Demand
The GENIUS Act was signed into U.S. law on July 18, 2025, establishing the first federal regulatory framework for payment stablecoins. It requires issuers to maintain 100% reserves in highly liquid assets such as U.S. dollars and short-term Treasury securities and to disclose their composition monthly. The law institutionalized substantial demand for reserve management and opened the stablecoin financial infrastructure market to Wall Street asset managers.
Morgan Stanley Investment Management announced the launch of its Stablecoin Reserves Portfolio (MSNXX) on April 23, 2026. The fund was established on April 16. It requires a minimum initial investment of $10 million, charges a 0.15% management fee and aims to maintain a net asset value of $1 per share. Its assets are limited to cash, U.S. Treasury securities with remaining maturities of no more than 93 days and eligible overnight repurchase agreements.
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The history behind this eventState Street Launches GENIUS Act-Aligned Money Market Fund for Stablecoin Reserves
The United States signed the GENIUS Act into law on July 18, 2025, requiring payment stablecoins to be fully backed by highly liquid assets such as cash and short-term U.S. Treasuries. The law has created a new reserve-management market for traditional asset managers, while directly affecting stablecoin redemption capacity and regulatory compliance.
State Street Investment Management launched the Stablecoin Reserves Money Market Fund (SSCXX) on June 16, 2026. Registered under Rule 2a-7, the fund invests primarily in U.S. government securities and repurchase agreements. It had about $121 million in initial assets and a 3.51% yield, with State Street Bank and Trust Company and Anchorage Digital serving as seed investors.
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