Morgan Stanley to 'build Bitcoin custody and trading in-house'…also weighing yield and lending services

Morgan Stanley has formally outlined plans to build its own technology for Bitcoin custody and trading services for clients. It said it is also reviewing yield-generation and lending services as part of its roadmap.

According to Decrypt on the 26th (local time), Amy Oldenburg, head of digital asset strategy at Morgan Stanley, was asked at the “Bitcoin for Corporations” event held in Las Vegas, U.S., about introducing Bitcoin-based yield and lending services. She replied, “Of course. Discussions and exploration are underway, and it’s a natural step on the roadmap,” signaling the possibility.

Morgan Stanley manages client assets totaling about $9 trillion. Oldenburg said the firm plans to build in-house capabilities so clients can custody and trade Bitcoin directly on its platform. She stressed that “simply leasing technology from outside is not sufficient,” adding that trust in the Morgan Stanley brand is predicated on the expectation that “there can be no failures.”

Regarding the amount of crypto assets clients currently hold outside the bank’s platform, she described it as “substantial.” However, she said she does not expect all clients to move their assets to the bank’s custody service. “Especially in the Bitcoin space, there will always be those who prefer self-custody,” Oldenburg said.

Morgan Stanley has recently continued to expand its digital-asset business. In September last year, it said it would offer trading in Bitcoin, Ethereum and Solana through the E*Trade app. It also filed an S-1 registration statement with the U.S. Securities and Exchange Commission last month to add an Ethereum ETF, and earlier registered funds related to Bitcoin and Solana.

A major Wall Street investment bank publicly stating it will build its own Bitcoin custody and trading infrastructure is drawing attention as institutional-market adoption accelerates. Morgan Stanley has not yet disclosed when it will target an actual service launch.