Morgan Stanley Executive Says US Banks Could Eventually Hold Bitcoin on Balance Sheets
Summary
- Morgan Stanley said US banks could eventually add Bitcoin to their own balance sheets over the long term.
- It said regulatory barriers remain a key variable, including Federal Reserve oversight, Basel capital standards and coordination among global regulators.
- Morgan Stanley's Bitcoin-linked exchange-traded product (ETP) MSBT drew more than $100 million in inflows within six days of launch, all from self-directed investments by clients.
Forecast Trend Report by Period
Morgan Stanley sees a path for US banks to eventually hold Bitcoin on their own balance sheets, though regulatory hurdles remain a key factor.
CoinDesk reported on May 3 that Amy Oldenburg, Morgan Stanley's head of digital asset strategy, said at the Bitcoin conference in Las Vegas that the regulatory environment is becoming more favorable. She added that US banks will eventually put Bitcoin on their balance sheets.
Oldenburg said several issues would need to be resolved first, including Federal Reserve regulations, Basel capital standards and coordination among global regulators.
Morgan Stanley recently launched MSBT, a Bitcoin-linked exchange-traded product. The product attracted more than $100 million in the first six days of trading, according to the report.
Oldenburg emphasized that all of those inflows came through self-directed client investments. Demand was strong even though the product has not yet been offered through advisory services on wealth-management platforms, she said.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
