Morgan Stanley has established a Digital Asset Lab to test blockchain technologies including stablecoins, tokenization, and decentralized finance (DeFi) applications, according to Bloomberg reporting on September 29. The initiative represents the bank's continued expansion into cryptocurrency markets.
The lab operates within Morgan Stanley's broader network of innovation labs, allowing employees to explore emerging technologies while protecting the bank's core systems. Megan Brewer, who leads market innovation and labs at the firm, stated that the bank will explore tokenized deposits, central bank digital currencies (CBDCs), money-market funds, and DeFi vaults designed to automate investment strategies.
Expanding Crypto Offerings
Morgan Stanley has accelerated its cryptocurrency presence through multiple channels. The bank became the first to launch a spot Bitcoin ETF, Morgan Stanley Bitcoin Trust (MSBT), in April. It has also gained regulatory approval for Ethereum and Solana ETFs, both with a fee structure of 0.14% and designed to pass staking rewards to investors.
The bank enabled clients to trade Bitcoin, Ethereum, and Solana through its E*Trade platform. Morgan Stanley Investment Management launched the Stablecoin Reserves Portfolio (MSNXX), a money market fund focused on stablecoin reserves.
Morgan Stanley has disclosed holdings in XRP through ETFs and increased its stake in Armada Acquisition Corp II, a SPAC partner of Ripple-backed Evernorth Holdings, signaling potential interest in XRP trading and ETF products.
