According to Amy Oldenburg, Morgan Stanley's head of digital asset strategy, the bank anticipates that bitcoin will eventually be included on US bank balance sheets, although several obstacles must be overcome. Oldenburg spoke at the Bitcoin Conference in Las Vegas, outlining the firm's efforts to expand its digital asset business in response to growing client demand. She noted that the regulatory environment has become more supportive in recent years, allowing the firm to move forward with its digital asset plans.
While US banks may eventually hold bitcoin on their balance sheets, Oldenburg cited several hurdles, including the need for regulatory clarity from the Federal Reserve and other global regulators. Despite these challenges, Morgan Stanley has already made significant strides in the digital asset space, including the launch of MSBT, a bitcoin-backed exchange-traded product that attracted over $100 million in its first six days of trading. The product's success demonstrates significant client demand for digital asset products, and Oldenburg emphasized the need for financial advisors to be better educated about these products to meet client needs. Morgan Stanley is pursuing an OCC digital trust charter, which would enable the bank to custody crypto directly and offer spot crypto trading on its wealth platform.
The bank's efforts reflect a broader trend of Wall Street institutions increasingly embracing digital assets, with BlackRock's IBIT amassing over $61 billion in assets and becoming the fastest-growing ETF in history.