Morgan Stanley is taking significant steps to broaden its digital asset offerings, including plans for a comprehensive custody and exchange solution for cryptocurrencies. During a recent discussion at Strategy World, Amy Oldenburg, the Head of Digital Asset Strategy at Morgan Stanley, shared insights into the firm’s ambitions in the digital asset space alongside Phong Le, the President and CEO of Strategy.
The bank’s initial move will see clients on its E-Trade platform able to buy and sell spot cryptocurrencies, thanks to a partnership that will facilitate this service. Last year, Morgan Stanley had indicated its intention to pursue a spot Bitcoin exchange-traded fund (ETF) and enable direct trading for clients via E*Trade. As part of its roadmap, the bank aims to roll out a fully integrated custody and exchange platform within the next year.
Oldenburg emphasized that this development reflects a “natural progression” for Morgan Stanley, stating that clients expect the firm to uphold its reputation for reliability and security in the digital asset market. She confirmed plans for offerings that include Bitcoin trading, lending, yield generation, and custody solutions.
The custody service is particularly noteworthy, as it would provide clients with legal ownership of their digital assets under Morgan Stanley’s oversight. While the firm acknowledges that some clients may still lean towards self-custody options, especially for Bitcoin, it aims to cater to a wider audience by offering a trusted solution.
Oldenburg drew from her extensive experience, having spent over 26 years at Morgan Stanley, including a decade managing the firm’s emerging markets investment business. This background has informed the firm’s approach to digital assets, as she has witnessed early cryptocurrency adoption in 17 of the top 20 markets worldwide.
In her commentary, Oldenburg highlights the bank’s commitment to adapting its services as the cryptocurrency space matures, stating, “As this space continues to institutionalize, we aim to provide comprehensive services to our clients.” The firm is also in the exploratory phase for additional services, including potential yield and lending products tied to crypto holdings. While no concrete timeline was provided for the introduction of these features, Oldenburg suggested they would follow the launch of the custody and exchange platform.
Morgan Stanley currently manages around $8 trillion in assets, and a considerable percentage of its clients are already holding crypto assets off-platform. By integrating these assets into its system, the firm anticipates being able to offer extensive custody, trading, and possibly lending services.
In related news, Bitcoin has recently experienced a surge, rising by 8% and trading near $69,000, buoying interest in both crypto and associated equities. The momentum for investment in digital assets continues to gather pace, and Morgan Stanley appears poised to capitalize on this evolving landscape.
