Morgan Stanley pursues digital asset bank charter as Wall Street accelerates crypto adoption

Morgan Stanley has officially submitted a proposal for a new national trust bank charter seeking authorization to custody digital assets at a time when Wall Street firms are actively pursuing strategies to enter the crypto market.

According to filings published by the US Office of the Comptroller of the Currency (OCC), the investment bank submitted an application to create Morgan Stanley Digital Trust, National Association, a wholly owned subsidiary designed to custody and manage digital assets on behalf of clients.

Sources familiar with the situation who wished to remain anonymous, as the talks were private, mentioned that the headquarters will be based in Purchase, New York; however, they stressed that services will be accessible across the US.

Meanwhile, the public filing lacks operational clarity but implies a broader strategic scope than simple asset protection. Therefore, if Morgan Stanley’s proposal is approved, analysts anticipate this charter could place the global investment management firm in the same category as other crypto-focused companies seeking federal regulatory approval rather than relying solely on state-level licensing.

Morgan Stanley seeks to remain competitive in the crypto industry 

Recently, Morgan Stanley has demonstrated heightened interest in the crypto industry. Analysts discovered that the Wall Street investment bank has moved past speculative involvement, opting instead to build its own internal frameworks and specialized crypto products.

Some of the crypto-related activities the financial services company embraced this year include submitting an application to list spot Bitcoin and Solana exchange-traded funds (ETFs), disclosing its intention to launch a proprietary digital wallet later in the year, and appointing experienced executive Amy Oldenburg to spearhead its digital asset strategy in a newly established role.

Apart from these activities, Morgan Stanley also announced its partnership with Zerohash, which will give ETrade clients the opportunity to trade digital assets this year. 

Collectively, these moves demonstrate the bank’s commitment to solidifying its position as a leader in the crypto ecosystem. Moreover, they signal the bank’s preparation for greater client engagement in areas such as custody, product structuring, and direct involvement in blockchain services, such as staking. 

In the meantime, regarding Morgan Stanley’s new national trust bank charter application, sources highlighted that the proposal indicates the global asset management firm’s wholly owned subsidiary would oversee specific digital assets, executing buy-sell orders, swaps, and transfers to facilitate client investments while enabling fiduciary staking services.

Nonetheless, several individuals have raised concerns about applications from firms in the digital-asset ecosystem. Banking trade groups argue that the applications abuse the intended purpose of a trust bank charter, potentially threatening the safety of both consumers and the broader financial system. Even so, Jonathan Gould, the Comptroller of the Currency, firmly backed the process, claiming that it facilitates more robust regulatory oversight of these companies.

The OCC paves the way for digital asset custody in the financial landscape 

Morgan Stanley’s application follows the OCC’s December 2025 decision to grant conditional approvals for crypto national trust bank charters to Paxos Trust Company, Ripple National Trust Bank, Circle’s First National Digital Currency Bank, Fidelity Digital Assets, and BitGo.

In February, reports highlighted that three additional firms secured approval. These companies include Stripe’s Bridge National Trust Bank, Crypto.com National Trust Bank, and Protego’s National Digital Trust Company, bringing the total to eight firms. 

Meanwhile, it is worth noting that Morgan Stanley’s application represents the bank’s first-ever trust charter specifically focused on digital assets. Additionally, analysts alleged that the de novo charter application initiates a lengthy review process anticipated to take several months. 

During this time, regulators will assess capital structure, risk controls, compliance frameworks, and operational readiness. If granted authorization, Morgan Stanley Digital Trust could operate as a federally regulated trust bank. Nonetheless, its permissible activities rely on final authorization terms.

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