TLDR Tech / Crypto
Morgan Stanley Launches Fund for Stablecoin Management
MSNXX (Stablecoin Reserves Portfolio) is a money market fund allocating to cash, US Treasuries, and overnight repos, targeting stablecoin issuers seeking GENIUS Act-compliant reserve management. The fund positions Morgan Stanley ($9.3T AUM) against BlackRock, which currently holds reserve assets for the two largest stablecoin players: Circle's USDC reserves sit in BlackRock's USDXX at roughly $78B, while Ethena uses BlackRock's BUIDL fund across nine chains at $2.5B. With the stablecoin market at $316B and projected to reach $2T by the end of 2028, reserve custody represents a structurally growing fee opportunity for traditional asset managers.
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