Morgan Stanley files for bank charter to streamline digital asset push

Morgan Stanley has submitted an application to the U.S. Office of the Comptroller of the Currency for a new entity named “Morgan Stanley Digital Trust, National Association” to streamline its digital asset push.

The filing seeks approval to operate as a national trust bank with fiduciary powers, creating a standalone vehicle dedicated to digital asset activities.

Source: American Banker

➡️ Why this matter

Morgan Stanley has been steadily positioning itself to win in digital asset wealth management.

With Amy Oldenburg leading digital assets and the scale of the E*TRADE from Morgan Stanley platform, the distribution infrastructure is already in place.

However to offer the wide range of products and services tied to digital asset wealth management such as staking and digital asset custody, Morgan Stanley seeks to ring fence and keep a clean supervisory perimeter for digital assets.

A standalone national trust bank allows Morgan Stanley to:

- Ring-fence digital asset custody and staking

- Establish a clean OCC supervisory perimeter

- Isolate operational and regulatory risk

- Build dedicated infrastructure for crypto-native asset servicing

Will other Wall Street banks also take this approach to ring fence and seperate their digital asset businesses? Stay tuned.

✅ Want more insights on the business of tokenization and digital assets? Join the Insider's Club for more exclusive insights, strategies and resources.