According to Amy Oldenburg, Morgan Stanley's head of digital asset strategy, the bank expects bitcoin to be included on US bank balance sheets in the future, although several obstacles need to be overcome. Oldenburg made these comments while speaking at the Bitcoin Conference in Las Vegas, where she outlined the firm's plans 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 make progress in the digital asset space.
However, Oldenburg highlighted several barriers that must be addressed before a bank like Morgan Stanley can hold bitcoin on its balance sheet, including the need for regulatory clarity from the Federal Reserve, compliance with Basel rules, and coordination among multiple global regulators. This is not the first time a major bank has expressed interest in entering the digital asset sector, as BNY CEO Robin Vince recently stated that large financial institutions will drive the next phase of crypto adoption. Nevertheless, Oldenburg emphasized that Morgan Stanley is actively pushing into the digital asset space, having recently launched a bitcoin-backed exchange-traded product called MSBT, which attracted over $100 million in its first six days of trading.
Notably, these inflows came entirely from self-directed clients, demonstrating significant demand for such products. Oldenburg attributed the slow adoption of bitcoin among advisors to an education gap, which the bank is addressing through internal training programs. The appetite for regulated bitcoin exposure is evident, with BlackRock's IBIT amassing over $61 billion in assets.
Furthermore, 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.