Morgan Stanley Pushes Deeper Into Crypto With New Charter
- Morgan Stanley seeks a trust bank charter to custody crypto for investment clients.
- The filing also covers trading and staking under a new regulated U.S. trust model.
- Balchunas says the move could draw older investor wealth into crypto markets soon.
Morgan Stanley has applied for a national trust bank charter that would allow it to custody digital assets directly, trade them, and offer staking services nationwide. Bloomberg reported that the application was filed with the Office of the Comptroller of the Currency on February 18. The move expands the Wall Street firm’s role in crypto markets. Bloomberg ETF analyst Eric Balchunas said the decision could open the door to a large new group of investors.
On Friday, Balchunas reacted on X to the filing. “Wow, they’re really going all the way,” he wrote. He noted that Morgan Stanley already has spot Bitcoin and Ether ETFs in development. He also pointed to the firm’s vast advisory network and asset base.
Charter Filing Expands Crypto Services
The OCC filing states that the proposed trust bank would operate from Purchase, New York, and provide services across the United States. The entity would safeguard digital assets for investment clients. It would also execute trades and provide staking services.
This structure would allow Morgan Stanley to hold crypto assets directly under a regulated framework. Custody and fiduciary services often present barriers for institutional entry into digital assets. By creating its own trust bank, the firm could integrate custody within its existing wealth management platform.
Bloomberg reported that the charter application would expand Morgan Stanley’s crypto presence. The firm has already pursued digital asset initiatives across several channels. Now, it seeks regulatory approval to manage crypto assets more directly.
Advisors and Wealth Concentration
Balchunas said the filing carries added importance because Morgan Stanley employs about 16,000 financial advisors. Those advisors manage roughly $7 trillion in assets for 18 million clients. He described that network as “a massive network of Boomer money.”
Federal Reserve data shows that wealth in the United States remains concentrated among older generations. Baby Boomers and those over 70 hold more than 80% of total wealth. Historically, crypto adoption has skewed toward younger investors.
Balchunas suggested that advisors could introduce digital assets into client portfolios. Many of those clients are near retirement or already retired. If even 1% to 2% of portfolios within a portion of the $7 trillion platform moved into crypto, inflows could reach tens of billions of dollars.
Could this charter mark a turning point in how older investors approach digital assets?
Related: Morgan Stanley Bitcoin ETF Puts Distribution Over Product
Broader ETF and Digital Strategy
In January, Morgan Stanley hired Amy Oldenburg as head of digital-asset strategy. The bank has also applied for spot Bitcoin, Ethereum, and Solana exchange-traded funds. These filings aim to offer regulated crypto exposure through its wealth management and brokerage channels.
Morgan Stanley partnered with Zerohash to enable E*Trade customers to trade digital assets starting this year. This step expanded retail access within the firm’s ecosystem. The ETF filings and trust charter application together signal a coordinated approach.
Balchunas said the combination of ETF proposals and a federally regulated crypto custodian shows that the firm is “really going all the way.” Analysts view the trust charter as infrastructure that could support institutional and retail crypto participation under established regulatory oversight.
The simultaneous pursuit of custody authority and exchange-traded products reflects how legacy financial institutions continue to integrate digital asset services into traditional financial platforms used by millions of clients.
