Morgan Stanley is making a strategic move into digital assets by applying to establish a national trust bank. The proposed entity, Morgan Stanley Digital Trust, National Association (MSDTNA), will focus on providing custody services for crypto assets.
The trust bank, a wholly owned subsidiary, plans to hold digital assets for clients, facilitate buying and selling, and support investment strategies, including staking services.
This initiative aims to bring substantial client crypto holdings currently outside the firm's platforms into a regulated structure. The move aligns with a broader trend among major financial institutions building compliant digital asset infrastructure amid evolving regulatory landscapes. Morgan Stanley is also exploring Bitcoin-backed lending and yield products, with plans to integrate spot crypto trading for E*Trade customers before launching its own custody and exchange platform.