Morgan Stanley Looks to Bring Crypto Custody In-House

Morgan Stanley has applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter as it looks to bring its digital asset operations in-house.

The proposed entity, Morgan Stanley Digital Trust, National Association, would handle direct crypto custody, fiduciary staking, and token trading for clients.

Based in Purchase, New York, the trust bank would operate as a wholly owned subsidiary, safeguarding crypto assets on the firm’s regulated balance sheet.

The move represents the bank’s most significant structural step into digital assets to date. At present, a meaningful share of client crypto holdings sits with third-party providers. While functional, that model leaves Morgan Stanley dependent on external infrastructure for a business it increasingly views as core.

By securing a trust charter, the bank would consolidate custody and settlement under its direct oversight, reducing operational reliance and tightening control.

Morgan Stanley has described its approach to crypto custody as “no-fail”,  underlining the strategic importance it places on operational resilience and fiduciary responsibility.

Rather than compete solely on trading volumes, many large institutions like Morgan Stanley are increasingly targeting custody, settlement, and token servicing, which are areas that mirror the role of clearing houses and custodial banks in traditional markets and generate more stable, recurring revenues.

The move builds on Morgan Stanley’s wider digital asset push, following its application to the US Securities and Exchange Commission to launch crypto-linked ETFs, which marked a first for a major US bank.

The proposed funds would track the price of Bitcoin and Solana, offering investors indirect exposure through traditional brokerage accounts rather than direct ownership of the underlying tokens, thereby reducing custody and operational risks.