Morgan Stanley Selects BNY Mellon and Coinbase for Bitcoin Trust Custody

Key Highlights:

• Morgan Stanley partners with Coinbase Custody and BNY Mellon for Bitcoin Trust.
• The fund is mostly stored in offline “cold storage” to reduce hacking risk.
• Bitcoin price jumps 8% following Morgan Stanley’s crypto move.

Wall Street giant Morgan Stanley is preparing to launch its first Bitcoin Trust, partnering with Coinbase Custody and BNY Mellon. The investment giant plans to store the fund’s BTC with these industry players. This marks a major development in the integration of traditional banking and blockchain technology.

This strategic development follows Morgan Stanley’s filing for a Bitcoin Trust on January 6, 2026, making it the first US bank to do so. In addition to the BTC fund, the firm has also filed for a Solana ETF.

Morgan Stanley Launches First Bitcoin Trust

Morgan Stanley reportedly updated its registration with the US Securities and Exchange Commission (SEC) today on its Bitcoin Trust. According to the SEC filing, Coinbase Custody Trust Company will hold and protect the BTC.

At the same time, BNY Mellon will manage the fund’s accounting and take care of shareholder services. These two institutions will store the digital assets and manage transfers when shares are created or redeemed.

As noted in the filing, Morgan Stanley’s Bitcoin Trust fund will mostly be stored in offline “cold storage” vaults. This is to keep the private keys of the internet to lower the risk of hacking. In addition, some BTC may be temporarily moved to active trading wallets when shares are created or redeemed. While there is insurance, it is shared among customers and may not cover all losses.

Notably, BNY Mellon will handle several key roles for the fund. It will act as the fund administrator, transfer agent, and cash custodian. The firm will also manage accounts, shareholder records, and cash for ETF transactions.

The ETF will be a passive fund that holds BTC directly. It will track the price of Bitcoin without using derivatives or leverage.

Morgan Stanley Moves Into Crypto ETFs

Notably, Morgan Stanley, one of the major players in the traditional banking industry, previously filed to launch Bitcoin and Solana ETFs. This marked the first major push into crypto ETFs by a top US bank.

It is also worth noting that the move follows the company’s initiative to expand crypto access to all clients in October. This marked the beginning of the Wall Street behemoth’s entry into crypto.

Other banks have also exhibited similar steps. For example, Bank of America began allowing its wealthy clients to recommend crypto allocations to clients starting in January.

This increasing adoption of crypto by Wall Street platforms is mainly based on the growing regulatory clarity in the US. The Office of the Comptroller of the Currency (OCC) permitted banks to act as intermediaries in crypto transactions. This development significantly reduced barriers between traditional finance and cryptocurrencies.

This shift shows that established financial institutions are increasingly integrating cryptocurrency into their offerings, bringing digital assets closer to everyday investors.

Bitcoin Price Surges 8%

In response to Morgan Stanley’s latest Bitcoin development, the Bitcoin price has surged by more than 8%. Currently trading at $72,128, the coin has entered the green zone after weeks of volatility.

While the crypto has surged by 7.9% over the past week, it is still red on a monthly basis. The coin has dipped by almost 8% in a month. However, the recent uptrend has sparked widespread optimism.