Morgan Stanley expects US banks to eventually hold Bitcoin on their balance sheets, although significant regulatory barriers still need to be cleared first. Speaking at the Bitcoin Conference in Las Vegas, Amy Oldenburg, the bank’s head of digital asset strategy, said Morgan Stanley is continuing to expand its digital asset business as client demand keeps rising.
Friendlier climate, but rules still matter
Oldenburg said the regulatory backdrop has become more supportive than in previous years, but major obstacles remain before large banks can integrate Bitcoin directly into their balance sheets. She pointed specifically to Federal Reserve policies and Basel regulatory rules as key issues that still need resolution. Until those constraints are addressed, direct balance-sheet exposure to Bitcoin remains difficult for institutions such as Morgan Stanley.
MSBT posts strong early demand
Even without direct balance-sheet adoption, Morgan Stanley has already moved deeper into the digital asset market. The bank launched MSBT, a Bitcoin-backed exchange-traded product, which brought in more than $100 million within its first six days. According to the report, those inflows were largely self-directed by clients, underscoring strong demand for regulated Bitcoin exposure through traditional financial channels.
Custody and spot trading ambitions
Oldenburg also said the bank is pursuing a digital trust charter from the US Office of the Comptroller of the Currency, or OCC. Securing that approval could allow Morgan Stanley to offer direct crypto custody and spot trading services in the future. That would mark a broader strategic push beyond packaged investment products and into core digital asset infrastructure.
At the same time, Oldenburg stressed that advisor education remains a key gap. As interest in Bitcoin grows, the bank still needs to better equip its advisors so they can bridge the disconnect between what clients want and what advisory platforms are currently prepared to deliver.