Morgan Stanley is taking a major step deeper into the cryptocurrency market. The $8 trillion Wall Street firm has applied for a U.S. national trust bank charter to directly custody digital assets for institutional clients.
The company submitted its application on Feb. 18 to the Office of the Comptroller of the Currency. The proposed entity, Morgan Stanley Digital Trust, National Association, would operate under federal supervision if regulators approve the request.
Building Regulated Crypto Infrastructure
Morgan Stanley wants to control its own crypto custody operations instead of relying on third-party providers. Therefore, the national trust bank charter would allow the firm to hold digital assets directly on behalf of clients.
According to filings, the new unit plans to support several crypto services, including:
- Custody of digital assets like Bitcoin, Ether, and Solana
- Buying, selling, and transferring cryptocurrencies
- Token swaps
- Staking services on a fiduciary basis
This move reflects a broader strategy. In recent months, Morgan Stanley has expanded its digital asset team and appointed a head of crypto strategy. Furthermore, the bank has filed for multiple spot Bitcoin, Ether, and Solana ETFs. It also plans to roll out direct cryptocurrency trading through its E Trade platform.
What OCC Approval Could Mean
The OCC charter process involves strict reviews. Regulators will examine capital levels, compliance systems, risk management, and operational readiness. However, approval would give Morgan Stanley the ability to offer crypto custody under clear federal oversight.
Industry observers see this application as both symbolic and practical. On one hand, it signals growing confidence in digital assets as part of mainstream finance. On the other hand, it positions Morgan Stanley alongside firms like Fidelity Digital Assets and other crypto focused companies that have pursued similar federal approvals.
A Sign of Broader Institutional Adoption
Large financial institutions continue to move into digital assets as client demand rises. Many institutional investors now seek secure and regulated crypto custody solutions.
If Morgan Stanley secures this charter, it could accelerate institutional crypto adoption. Competitors may follow, which could further integrate digital assets into the traditional banking system.
