Overview
- Morgan Stanley Wealth Management announced a referral program that lets eligible clients lend BTC, ETH or SOL to Galaxy Digital in exchange for spot exchange-traded product shares.
- Under the arrangement Galaxy assesses whether a loan can be settled with ETP shares and then coordinates an in-kind creation with an authorized participant to deliver those shares into client brokerage accounts.
- Galaxy will lower its lending minimum for Morgan Stanley-referred clients from $25 million to $5 million and the firms say onboarding times could fall by as much as 75% versus typical multi-week processes.
- Morgan Stanley will provide education and make referrals but will not execute the loans; clients should note that Galaxy serves as the lending counterparty and bears settlement and credit risk on those transactions.
- Placing ETP shares inside brokerage accounts lets clients consolidate crypto with other assets and access margin, lending and standard tax reporting, and the deal builds on the wider shift of investor flows into spot crypto ETPs since 2024.