US-based investment bank Morgan Stanley has formally applied for a national trust bank license as it seeks to expand its presence in the digital asset sector. Should the application be approved, the move would empower the bank to deliver a broader suite of crypto-related services to American clients—including not just custody, but also trading and staking of cryptocurrencies.
Morgan Stanley Sets Up New Digital Asset Unit
Morgan Stanley submitted its application to the Office of the Comptroller of the Currency (OCC) in February, aiming to establish a brand-new institution under the name “Morgan Stanley Digital Trust, National Association.” If approved, this license would enable the bank to offer custody and fiduciary services, acting as a trusted partner for safeguarding client assets. The proposed entity would be responsible for the custody of select digital assets while providing trading, settlement, and transfer opportunities directly to clients.
Financial Institutions Accelerate Search for Regulatory Clarity and Infrastructure
The past year has seen a marked increase in interest from traditional financial giants stepping into the digital asset space. This surge is largely attributed to heightened demand from institutional investors, particularly after recent market upheavals and the high-profile collapses of several crypto exchanges. In response to industry needs, Morgan Stanley recently appointed Amy Oldenburg to head its digital assets division and has begun hiring new specialists for cryptocurrency strategy and product development roles.
Morgan Stanley’s ambitions in digital assets reach far beyond simple custody and trading. The bank has recently advanced applications for spot Bitcoin exchange-traded funds (ETFs), Solana ETFs, and has initiated the process to launch an ETF based on staked Ether. These moves signal a broader strategy to integrate cryptocurrencies into the mainstream suite of managed financial services the bank provides, in line with growing client interest.
In statements released by Morgan Stanley, the bank emphasized that compliance with regulations in digital asset custody and services—where other industry players have already gained an edge—remains a top priority for the institution.
Should regulators give the green light, Morgan Stanley aims to hold digital assets on behalf of clients directly, thus bypassing the need for third-party custodians. Such an approval would make Morgan Stanley one of the few institutions able to deliver vertically integrated crypto services within its operations.
While trust banks in the United States operate under a narrower mandate than full-service national banks—and typically do not accept deposits or make loans—this model offers significant advantages. In particular, it provides a secure platform for stablecoin issuers and payment processors to deliver trusted custody and settlement services in an increasingly regulated environment.
Recently, the OCC has granted national trust bank licenses to several crypto firms, including BitGo, Fidelity Digital Assets, Circle, Ripple, and Paxos. These regulatory moves are blurring the lines between conventional financial institutions and emerging digital asset companies, allowing for a more integrated financial landscape.
Morgan Stanley’s application is part of a broader trend as fintech leaders like Stripe’s Bridge and Crypto.com have also sought similar licenses. As a wave of institutions race to establish a legal foundation for crypto activities, competition to provide regulated digital asset services is intensifying across the industry.
