Morgan Stanley has unveiled a new institutional money market fund designed to allow stablecoin issuers to invest their dollar reserves in compliant, yield-bearing instruments — directly competing with BlackRock’s dominant BUIDL fund.The MS Digital Reserve Fund will invest in short-duration US Treasury bills and overnight repos, offering yields that track the federal funds rate minus 15 basis points. It will be available exclusively to stablecoin issuers and regulated digital asset entities.The launch comes as the stablecoin market undergoes structural transformation. With the GENIUS Act expected to mandate reserve transparency and liquidity requirements, stablecoin issuers are being pushed toward regulated instruments…
Author: Emily Chen
The GENIUS Act — a bill that would establish a comprehensive regulatory framework for US dollar-pegged stablecoins — advanced out of the Senate Banking Committee on a bipartisan 13-7 vote, clearing a major hurdle toward floor consideration.The bill would require stablecoin issuers to maintain 1:1 reserves in high-quality liquid assets, obtain a federal or state license, submit to regular third-party audits, and implement robust AML compliance programs. It would also bar algorithmic stablecoins from marketing themselves as dollar-pegged.Committee Chairman Senator Tom Parker praised the vote as “a historic step toward bringing clarity to digital dollar markets.” Circle CEO Jeremy Allaire…