Overview
- MSBT, a bitcoin-backed exchange-traded product issued by Morgan Stanley, drew more than $100 million in its first six trading days from self-directed accounts before advisors could offer it.
- Morgan Stanley recommends a 2% to 4% bitcoin allocation for suitable clients, yet advisor adoption has lagged, so the firm launched training to close what it calls an education gap.
- The bank is seeking an OCC digital trust charter, a federal license that would let it hold crypto directly for clients and enable spot bitcoin trading on its wealth platform.
- Amy Oldenburg, who leads digital asset strategy, said banks may one day hold bitcoin on their own balance sheets, though Federal Reserve guidance, Basel capital rules, and cross-border alignment keep that step out of reach for now.
- MSBT uses Coinbase and BNY Mellon as dual custodians, and broader demand for regulated exposure—exemplified by BlackRock’s $61 billion IBIT—has Morgan Stanley expanding offerings such as its Stablecoin Reserves Portfolio launched April 23.