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 key obstacles remain. Oldenburg discussed the firm's efforts to expand its digital asset business in response to growing client demand at the Bitcoin Conference in Las Vegas.
She stated that the regulatory environment has become more supportive over the years, allowing the firm to engage in the broader digital asset space. Oldenburg also mentioned that US banks may eventually hold bitcoin on their balance sheets, but highlighted the need for regulatory clarity and the removal of barriers such as Federal Reserve and Basel rules. 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 such products, and Oldenburg noted that there is a substantial gap between the products offered by advisors and client demand. To address this gap, 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.