Morgan Stanley launches Stablecoin Reserves Portfolio. Here's what it means

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Morgan Stanley Investment Management has introduced a new Stablecoin Reserves Portfolio, a government money market fund designed to offer stablecoin issuers a regulated, low-risk way to hold their reserve assets. This initiative positions Morgan Stanley to play a key role in the stablecoin market, especially with potential U.S. legislation like the GENUIS ACT possibly requiring stablecoin issuers to back tokens with high-quality liquid reserves held in regulated vehicles. The fund invests in highly liquid instruments like U.S. Treasury bills and repo agreements, targets a constant $1 net asset value, and offers daily liquidity.

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