Morgan Stanley moves to internalize crypto custody and staking

Morgan Stanley is moving closer to running more of its crypto operations itself, a change that could shrink the role of outside service providers used by large financial firms. For crypto investors, the story is less about a new product and more about who controls custody, staking administration, and lending support as Wall Street deepens its digital asset footprint.

In June, the Office of the Comptroller of the Currency gave preliminary conditional approval for Morgan Stanley Digital Trust to pursue a national trust bank charter. The proposed unit would be a wholly owned trust bank serving Morgan Stanley Wealth Management clients.

Its application outlines a broad set of in-house functions: custody, transaction administration, purchases, sales, swaps, transfers, fiduciary staking, and collateral administration tied to affiliate digital-asset lending. If the charter receives final approval and is implemented, Morgan Stanley could keep those activities within its own group instead of relying as heavily on specialist crypto firms.

The plan still has limits. Execution venues, trading liquidity, lending counterparties, validator operations, and other blockchain infrastructure would remain separate decisions and relationships. The OCC also attached financial conditions, including at least $50 million in Tier 1 capital, a liquid asset buffer, and enough liquidity to cover 180 days of operating costs.