Morgan Stanley to Launch Tokenized Stocks on Internal Trading Platform by 2026

Morgan Stanley tokenized stocks on internal trading venue

Summary:
Morgan Stanley will enable its clients to trade tokenized versions of U.S. stocks and ETFs on its internal alternative trading system (ATS) starting in the latter half of 2026. This initiative aligns with ongoing SEC pilot programs aimed at on-chain settlements at DTCC and Nasdaq. The bank's approach signifies a broader acceptance and integration of digital assets in traditional finance.

Key Takeaways:

Morgan Stanley is set to allow trading of tokenized stocks and ETFs on its ATS by late 2026.
This move is part of a larger trend in Wall Street to integrate blockchain technology into traditional finance.
Tokenized stock market value is projected around $800 million, with increasing trading volumes and active addresses.
Recent regulatory changes by the SEC support the adoption of tokenized securities.
Morgan Stanley is also pursuing developments in Bitcoin and Solana ETFs, as well as a digital wallet for tokenized assets.

Morgan Stanley's Tokenized Stock Trading Plans

Morgan Stanley will introduce tokenized stock trading for institutional clients on its internal alternative trading system (ATS) in the second half of 2026. This pivotal step amplifies Wall Street's endeavor to transition traditional equities onto blockchain infrastructures. According to Amy Oldenburg, the bank’s head of digital assets strategy, the ATS will facilitate the issuance and settlement of certain securities in tokenized formats, alongside their traditional versions. Oldenburg highlighted that this initiative is part of a carefully planned transition rather than a reaction to market trends.

Morgan Stanley's plan positions it at the forefront of the rapidly expanding tokenized stocks sector. As of December 2025, on-chain representations of U.S. equities have achieved approximately $800 million in market value and about $1.8 billion in monthly trading volume, as reported by ChainCatcher. The research further indicates around 50,000 active monthly addresses and a total of 130,000 holding addresses in tokenized equities, suggesting that the concept is evolving from niche experiments to a regular aspect of portfolio management for offshore and crypto-focused investors. In its initial phase, Morgan Stanley's ATS is expected to target tokenized blue-chip U.S. stocks and ETFs, with ambitions to connect its wealth management clients to an evolving range of digital securities over time.

Regulatory Environment Enhancing Tokenized Securities

Morgan Stanley's strategy is emerging in a regulatory landscape that has become increasingly supportive of tokenized securities. In late 2025, the U.S. Securities and Exchange Commission (SEC) issued a no-action letter to the Depository Trust & Clearing Corporation (DTCC), permitting its unit, the Depository Trust Company, to custody and acknowledge tokenized stocks, bonds, and other real-world assets on chosen blockchains for a three-year duration. This development enables DTCC to provide tokenization services at scale, allowing mainstream broker-dealers and banks to engage with on-chain settlements without needing to restructure existing market operations.

Recently, the SEC also greenlit a pilot program for Nasdaq to facilitate tokenized stock trading. This program allows participants the option of tokenized settlement while maintaining the same order book, priority protocols, and shareholder rights akin to traditional equities. ChainCatcher notes that the Nasdaq pilot aims to "explore the feasibility of on-chain settlement without altering the trading structure," mirroring Morgan Stanley's intention to incorporate tokenized elements into its existing ATS, rather than launching a separate crypto-exclusive exchange.

Additionally, Morgan Stanley has filed applications for spot Bitcoin and Solana ETFs and is developing its own native Bitcoin custody and trading platform. According to reports from RootData and CryptoRank, the bank is also working on a digital wallet dedicated to supporting tokenized assets. This indicates that the introduction of tokenized stocks is just one component of a comprehensive strategy for multi-asset digital securities.