According to Amy Oldenburg, Morgan Stanley's head of digital asset strategy, the inclusion of bitcoin on US bank balance sheets is a matter of when, not if. Speaking at the Bitcoin Conference in Las Vegas, Oldenburg outlined the firm's efforts to expand its digital asset business in response to growing client demand. While she acknowledges that the regulatory environment has become more supportive, Oldenburg points to several obstacles, including the Federal Reserve, Basel rules, and the need for global regulatory coordination, that must be addressed before a bank like Morgan Stanley can hold bitcoin on its balance sheet.
Despite these challenges, Morgan Stanley has already made strides in the digital asset space, including the launch of MSBT, a bitcoin-backed exchange-traded product that drew over $100 million in its first six days of trading. Oldenburg notes that this inflow was driven entirely by self-directed clients, highlighting the significant demand for such products.
To bridge the gap between advisor offerings and client demand, Morgan Stanley has launched internal training programs to educate financial advisors about digital assets. The bank is also pursuing an OCC digital trust charter, which would enable it to custody crypto directly and offer spot crypto trading on its wealth platform.
As the appetite for regulated bitcoin exposure continues to grow, with BlackRock's IBIT amassing over $61 billion in assets, Morgan Stanley remains committed to expanding its digital asset business and addressing the operational and regulatory hurdles that stand in the way of wider adoption.