Key Highlights
- The filing outlined plans for a new entity, Morgan Stanley Digital Trust, National Association.
- The proposed trust bank would mainly offer custody for digital assets held on behalf of clients.
Banking firm Morgan Stanley has filed a request for approval to create a national trust bank that focuses on digital assets, marking a step toward expanding its in-house crypto infrastructure.
A filing was submitted to the Office of the Comptroller of the Currency (OCC) on February 27. The filing outlined plans for a new entity, Morgan Stanley Digital Trust, National Association. The entity would operate as a federally chartered trust bank that focuses on crypto custody and related services.
Building a regulated custody platform
The proposed trust bank would mainly offer custody for digital assets held on behalf of clients. It would also support transactions such as buying, selling, transferring, and swapping tokens within investment portfolios.
The filing also indicated that the trust bank would facilitate staking services in a fiduciary capacity.
The institution would be wholly owned by Morgan Stanley Capital Management and integrated with the firm’s broader wealth management operations.
Bringing client assets in-house
Morgan Stanley’s wealth management division has identified significant crypto holdings among clients that currently remain outside the firm’s platforms. The proposed trust bank would allow those assets to be held under a regulated structure within Morgan Stanley’s ecosystem rather than through third-party providers.
Last month, reports stated the bank is planning to launch a digital wallet designed to hold cryptocurrencies and tokenized real-world assets, including private-company equity. The recent moves signal a broader push into digital finance. The bank also plans to introduce Bitcoin, Ether, and Solana trading through E*Trade in the first half of 2026.
Broader institutional shift
Morgan Stanley’s application follows as traditional financial institutions continue to build their regulated digital asset services. Custody has emerged as a major entry point for traditional banks.
The expansion has picked up momentum in a regulatory environment that appears to be supportive of digital asset services.
Morgan Stanley’s trust bank application highlights a shift toward integrating crypto services with traditional banking structures, with custody and regulated operations serving as a foundation for its digital asset strategy.
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