Morgan Stanley Seeks National Trust Charter for Client Crypto Custody

Morgan Stanley Applies for National Trust Charter to Hold Clients’ Crypto

Morgan Stanley is furthering its involvement in digital assets by applying for a national trust bank charter, which would permit the firm to custody cryptocurrencies and offer related services to clients across the United States.

Key Takeaways:

Morgan Stanley has filed for a national trust charter to manage cryptocurrency custody and offer trading and staking services.
This initiative is part of a larger trend among institutions aiming to establish regulated frameworks for digital assets.
If approved, it will enable the bank to securely hold client cryptocurrencies, enhancing its ETF and wealth management services.

According to a public filing with the Office of the Comptroller of the Currency (OCC), Morgan Stanley submitted the application on February 18, under the name Morgan Stanley Digital Trust, National Association. This filing proposes the creation of a new banking entity rather than acquiring an existing one.

Morgan Stanley's New Subsidiary for Crypto Custody, Trading, and Staking

Reports from Bloomberg and Forbes indicate that this new subsidiary will provide custody for select digital assets and facilitate investment activities, including purchases, sales, swaps, and transfers. The filing also emphasizes plans to offer staking services, which have become increasingly common among institutional crypto platforms.

A national trust charter allows for fiduciary operations, including asset safekeeping, custody, and trust services. The term “De novo” signifies that the bank will be created from the ground up. If approved, this would mark Morgan Stanley's first trust charter specifically focused on cryptocurrency.

This application coincides with a broader movement among financial institutions seeking federal oversight for their digital asset operations. Recently, payment firms and trading platforms—such as Stripe-owned Bridge and Crypto.com—have also pursued similar approvals.

This competitive race highlights a growing demand from institutional clients for regulated custody and trading infrastructure, especially in light of recent market volatility and notable exchange failures.

Since January, Morgan Stanley has been enhancing its footprint in the crypto sector by appointing equity markets executive Amy Oldenburg to lead its new digital asset division. Job listings suggest the firm is actively recruiting more specialists in strategy and product roles related to crypto services.

In addition, the investment bank has filed applications to launch spot Bitcoin and Solana exchange-traded funds (ETFs), followed by a proposed staked Ether ETF. Collectively, these filings indicate a broader strategy to integrate digital assets into traditional wealth management services.

If the charter receives regulatory approval, Morgan Stanley will be able to directly safeguard client holdings without relying on third-party custodians, positioning itself as a comprehensive provider for institutional crypto investors.

OCC Awards Trust Bank Charters to Prominent Crypto Firms

In December, the OCC granted national trust bank charters to several crypto and digital asset firms, including BitGo, Fidelity Digital Assets, Circle, Ripple, and Paxos. This expansion broadens access to tokenized finance.

Trust banks operate in a more limited capacity compared to full-service banks as they typically cannot take deposits or issue loans. Nonetheless, this model can still create opportunities for stablecoin issuers to custody assets and offer conversion and settlement services without depending solely on third-party providers.

Earlier this year, World Liberty Financial also applied for a U.S. national banking charter, reflecting the ongoing shift of stablecoins from merely a trading tool to a vital component of payment infrastructure.