Morgan Stanley has launched a "digital asset lab" to test cryptocurrency products, Bloomberg reported. The lab serves as a secure environment for the bank to explore stablecoins, tokenized assets, and decentralized finance applications.
According to Megan Brewer, head of firmwide market innovation and labs at Morgan Stanley, the facility provides "a secure, compliant and segregated environment to be able to test and explore some of these new areas of digital assets." The lab's team is currently working on products including tokenized deposits, central-bank digital currencies, and tokenized money market funds.
Morgan Stanley's move into digital assets represents an expansion of its existing crypto infrastructure. In April, the bank became the first to launch a bitcoin exchange-traded fund, the Morgan Stanley Bitcoin Trust, which manages over $871 million in assets. The bank began offering wealthy clients bitcoin exposure as early as 2021 through funds such as those by Galaxy Digital.
The bank has signaled its commitment to crypto products at multiple levels. Last year, CEO and Chairman Ted Pick stated the bank was working with regulators on how to safely offer crypto products. In April, Amy Oldenburg, the bank's head of digital assets, identified client education as the central challenge for Bitcoin adoption rather than product design.
Morgan Stanley is among major financial institutions worldwide developing products based on blockchain technology, including tokenized equities, stablecoins, bitcoin custody services, and trading platforms.
