A Long-Term Shift for US Banks
Morgan Stanley expects that US banks will eventually hold Bitcoin on their balance sheets, although major regulatory barriers still stand in the way. Speaking at the Bitcoin Conference in Las Vegas, Amy Oldenburg, the bank’s head of digital assets strategy, said Morgan Stanley is continuing to expand its digital asset business as client demand grows.
According to Oldenburg, the regulatory backdrop has become more supportive than in previous years. Even so, important obstacles remain before large banks such as Morgan Stanley can formally integrate Bitcoin into their balance sheets. She specifically pointed to issues related to Federal Reserve policy and Basel rules, both of which shape how banks manage capital, risk, and compliance exposure.
MSBT Debut Signals Strong Demand
Morgan Stanley has already taken concrete steps in the digital asset market. The bank launched MSBT, a Bitcoin-backed exchange-traded product, and the product drew more than $100 million in its first six days. Oldenburg noted that these inflows were notable because they were driven by self-directed clients, highlighting strong demand for regulated Bitcoin exposure.
The early performance of MSBT suggests that even if banks are not yet ready to carry Bitcoin directly on their own balance sheets, investor appetite for compliant and institutionally packaged access to the asset is already significant.
Custody and Spot Trading Remain a Key Goal
Oldenburg also said Morgan Stanley is pursuing a digital trust charter from the Office of the Comptroller of the Currency, or OCC. Such a license would allow the bank to offer direct crypto custody and spot trading services, potentially expanding its role in the market beyond investment products alone.
At the same time, she stressed that advisor education remains an important gap. In her view, client demand is rising faster than the ability of advisors to confidently support those needs. For traditional financial institutions, broader crypto adoption will require not only regulatory clarity, but also stronger internal expertise and advisory capabilities.
Overall, Morgan Stanley’s comments reflect a broader shift on Wall Street: major banks are moving closer to Bitcoin, but full balance-sheet adoption still depends on how regulation evolves.