Morgan Stanley is preparing a significant expansion of its digital asset business, outlining plans to introduce Bitcoin trading, custody, lending, and yield products for its clients in the coming years.
Speaking during a discussion at Strategy World, Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, confirmed that the bank will begin by enabling spot cryptocurrency trading through its brokerage arm, E*Trade. The move marks a shift from indirect exposure—such as exchange-traded funds—toward direct spot crypto transactions for eligible clients.
Key Takeaways
- Morgan Stanley plans to introduce spot Bitcoin and other cryptocurrency trading through E*Trade as its first step into expanded digital asset services.
- The bank is developing a fully integrated custody and settlement platform that will allow clients to hold digital assets under its direct supervision.
- Crypto-backed lending and yield-generating products are being explored as part of a broader long-term roadmap.
- Executives emphasized the importance of building proprietary infrastructure rather than relying solely on third-party technology providers.
- With approximately $8 trillion in assets under management, the firm aims to bring more client-held crypto assets onto its regulated platform.
Spot Bitcoin Trading to Roll Out via E*Trade
Morgan Stanley’s first step will allow clients on E*Trade to buy and sell spot cryptocurrencies through a partnership arrangement. The bank had previously indicated interest in spot Bitcoin ETFs and direct trading capabilities, but this rollout brings it closer to offering native crypto execution within its own ecosystem.
Oldenburg described the initiative as part of a broader strategic progression.
The emphasis on building in-house infrastructure reflects the bank’s intention to compete more directly with established crypto-native exchanges while maintaining institutional-grade controls and compliance standards.
Building a Native Custody and Settlement Platform
Beyond trading, Morgan Stanley is developing a fully integrated custody and settlement solution expected to begin rolling out next year. Under this model, clients would hold digital assets under the bank’s legal and operational oversight, similar to how traditional securities are custodied today.
The planned custody framework is designed to give clients the option of storing their crypto within Morgan Stanley’s regulated structure. However, the firm acknowledges that some investors—particularly Bitcoin holders—may continue to prefer self-custody arrangements.
Oldenburg noted that institutionalization is accelerating across global markets. Drawing on her 26 years at the firm, including 13 years leading emerging markets investing, she highlighted how quickly Bitcoin and other digital assets gained traction internationally.
Her comments reflect a broader trend among large U.S. financial institutions seeking to formalize crypto access under regulated frameworks rather than leaving clients to operate through offshore or standalone platforms.
$8 Trillion Platform and Off-Platform Crypto Holdings
Morgan Stanley currently oversees approximately $8 trillion in client assets across its platform. According to Oldenburg, a notable share of clients already hold crypto—but often outside the bank’s infrastructure.
Bringing those assets on-platform would allow Morgan Stanley to provide not only custody and trading but also additional services tied to those holdings.
The bank sees this migration as a long-term opportunity. As more high-net-worth and institutional clients seek regulated exposure, established firms with recognized brands may capture flows from self-directed crypto platforms.
Lending and Yield Products on the Roadmap
In addition to custody and trading, Morgan Stanley is in the early stages of exploring crypto-backed lending and yield-generating products. These offerings would allow clients to borrow against digital asset holdings or potentially earn returns on them.
Oldenburg described lending and yield as a logical extension of the bank’s strategy.
“It’s a natural part of the roadmap to continue to explore,” she said, adding that the firm is closely monitoring activity in decentralized finance lending and related products.
While no formal launch timeline has been disclosed, executives indicated these services would likely follow the rollout of the custody and exchange infrastructure. The phased approach underscores the bank’s cautious posture as it expands deeper into digital assets.
From ETF Access to Direct Crypto Infrastructure
Morgan Stanley was among the first major U.S. banks to offer wealthy clients access to Bitcoin funds and later spot Bitcoin ETFs. The shift toward direct trading and proprietary custody represents a more substantial commitment.
Rather than relying solely on third-party technology providers, the firm intends to develop a tightly integrated system under its own operational controls. That decision reflects both regulatory considerations and reputational risk management.
As one executive noted, clients expect reliability from a global financial institution of Morgan Stanley’s scale. The bank appears determined to ensure its crypto services meet the same standards applied to equities, bonds, and other traditional instruments.
Institutional Crypto Momentum Builds
Morgan Stanley’s announcement comes amid growing institutional engagement in digital assets across the United States. With regulatory clarity gradually improving and spot Bitcoin ETFs already live in the market, banks are under increasing pressure to provide seamless access.
For Morgan Stanley, the strategy is clear: offer trading, custody, and eventually lending and yield products under a single umbrella, giving clients the choice between self-custody and regulated institutional storage.
If executed as outlined, the plan would position the bank as one of the most comprehensive crypto service providers among major U.S. financial institutions.
While the timeline for lending and yield remains undefined, the direction is unmistakable. Morgan Stanley is moving beyond passive exposure and into full-spectrum digital asset infrastructure—signaling that Bitcoin and broader crypto markets are becoming embedded within traditional wealth management.
