Morgan Stanley Moves to Build Its Own Crypto Bank

Morgan Stanley has filed an application with the Office of the Comptroller of the Currency to establish a national trust bank charter, marking the firm’s most significant structural commitment to digital assets to date, and signaling a deliberate shift away from third-party infrastructure toward fully in-house crypto custody and trading.

What the Charter Actually Does

The new entity, named Morgan Stanley Digital Trust, National Association, will be headquartered in Purchase, New York and operate as a wholly owned subsidiary of the bank. Its mandate is specific: direct custody of crypto assets, staking on a fiduciary basis, and token trading and swapping services for investment clients.

The practical implication is a consolidation of assets that currently sit elsewhere. A significant portion of Morgan Stanley’s client crypto holdings are managed through third-party platforms, an arrangement that works operationally but keeps the firm dependent on external infrastructure for a business it increasingly views as core. The trust charter brings those assets in-house, under Morgan Stanley’s own regulated balance sheet and institutional brand. The firm has described that brand positioning explicitly as “no-fail”, language that signals how seriously it is treating the reputational dimension of crypto custody.

The 2026 Roadmap

The charter application fits into a broader digital asset buildout that has been taking shape across the firm’s business lines.

In the first half of 2026, Morgan Stanley is launching direct spot trading for Bitcoin, Ethereum, and Solana through its E*Trade platform, giving retail clients access to crypto through a familiar brokerage interface rather than a standalone exchange. By late 2026, the plan is to transition away from its current technology partnership with Zero Hash and operate on its own native custody and exchange stack.

Separately, the bank has filed for its own branded spot Bitcoin, Ethereum, and Solana ETFs, a move that would make it the first major U.S. bank to issue such products directly, rather than through a separate asset management affiliate. Further out, Morgan Stanley is exploring Bitcoin-backed lending and yield-bearing products that would become available as native custody infrastructure matures.

The Competitive Context

The timing of Morgan Stanley’s charter application reflects a broader shift in how major U.S. financial institutions are approaching crypto, moving from cautious participation through third parties toward direct ownership of the infrastructure. JPMorgan built its own blockchain rails years ago. BlackRock moved into tokenization. Morgan Stanley is now building the custody and trust layer that underpins the services it wants to offer.

The OCC application is still pending. If approved, Morgan Stanley Digital Trust would represent one of the most complete in-house digital asset operations at any traditional U.S. bank.

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