Representatives from Morgan Stanley outlined plans to expand the firm’s Bitcoin and digital asset services during a conversation at Strategy World, including the development of a native cryptocurrency custody and exchange platform.

Phong Le, President and CEO of Strategy, spoke with Amy Oldenburg, Head of Digital Asset Strategy at Morgan Stanley, about the firm’s current initiatives and longer-term roadmap in Bitcoin and digital assets.

As an initial phase, Morgan Stanley plans to allow clients on its E*Trade platform to buy and sell spot Bitcoin and digital assets through a partnership. 

In the previous year, the firm disclosed that it was pursuing access to a spot Bitcoin ETF and working toward enabling direct crypto trading for E*Trade users.

Over the coming year, the bank intends to develop an integrated custody and exchange solution.

“This is a natural progression,” the executive said. “We can’t just primarily rent the technology to do this. People expect Morgan Stanley, they trust our brand, to be no fail.”

The proposed platform would provide clients with legal custody of Bitcoin and digital assets under Morgan Stanley’s supervision. 

The firm noted that some clients, particularly those focused on Bitcoin, may continue to prefer self-custody.

Oldenburg referenced her experience in emerging markets as part of the firm’s broader approach to digital assets. 

During her 26-year tenure at Morgan Stanley, including 13 years leading its emerging markets investing business, she observed early Bitcoin and cryptocurrency adoption in 17 of the 20 largest global markets.

“As this space continues to institutionalize, we aim to provide comprehensive services to our clients,” Oldenburg said.

In addition to custody and trading, Morgan Stanley is evaluating potential yield and lending services tied to digital asset holdings.

“It’s a natural part of the roadmap to continue to explore,” she said, adding that the firm remains in the early stages and is monitoring developments in decentralized finance lending and related products.

Morgan Stanley stated that it oversees approximately $8 trillion in client assets. A portion of those clients currently hold Bitcoin and digital assets outside of the firm’s platform. 

Consolidating those holdings within Morgan Stanley’s infrastructure could enable the firm to provide custody, trading, and potentially yield or lending services through a single platform.

The firm did not provide a specific timeline for launching yield or lending products, indicating that such services would follow the rollout of its custody and exchange platform.

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