According to Amy Oldenburg, Morgan Stanley's head of digital asset strategy, the inclusion of bitcoin on US bank balance sheets is inevitable, although several obstacles need to be addressed. Oldenburg mentioned that the bank has been involved in the digital asset space for many years and that the regulatory environment has become more supportive.
She highlighted that US banks may eventually hold bitcoin on their balance sheets, but noted that barriers such as the Federal Reserve, Basel rules, and the need for global regulatory clarity must be overcome. Oldenburg emphasized that Morgan Stanley is not waiting for these hurdles to be cleared and has already launched a bitcoin-backed exchange-traded product, which attracted over $100 million in its first six days of trading.
The product's success demonstrates significant client demand for such offerings. Oldenburg also pointed out that there is a gap between what advisors offer and client demand, with 80% of ETP exposure on the wealth platform being self-directed. To address this, Morgan Stanley has launched internal training programs to educate financial advisors.
Furthermore, the bank is pursuing an OCC digital trust charter to enable direct crypto custody and spot crypto trading on its wealth platform.