Morgan Stanley Opens Crypto Doors: All Clients Welcome To Invest

Morgan Stanley, one of the largest investment firms in the US, announced on Friday that it will broaden access to crypto investments for all clients, including those with retirement accounts. 

This shift, reported by CNBC, allows financial advisors to present cryptocurrency funds to any client starting October 15, moving away from the previous restrictions that limited access to individuals with a minimum of $1.5 million in assets and an aggressive risk tolerance.

Morgan Stanley Broadens Crypto Access

This decision marks a notable evolution in the firm’s approach to digital assets, especially following the US government’s changing stance on cryptocurrencies under President Donald Trump’s administration. 

Throughout the year, the Republican Party, spearheaded by Trump’s vision of making America the ‘crypto capital of the world’, has taken significant steps towards this goal. 

These include the passing of the GENIUS Act for stablecoins and the appointment of Paul Atkins as the new US Securities and Exchange Commission (SEC) chair. This has also led to the dropping of several enforcement cases which targeted industry giants like Coinbase, Binance, Uniswap, among others. 

As a result, Morgan Stanley recently indicated that it would enable trading of THE market’s largest cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), through its E-Trade subsidiary.

Furthermore, the firm has consistently demonstrated a willingness to adapt to market trends, particularly as competition from platforms like Coinbase (COIN) and Robinhood (HOOD) intensifies.

As it eliminates eligibility requirements for crypto funds, the bank plans to implement an automated monitoring system to ensure that clients do not become overly concentrated in these investments.

Major Banks Explore Stablecoin Launches

The global investment committee at Morgan Stanley has recommended a cautious approach, suggesting a maximum initial allocation of up to 4% to cryptocurrencies based on individual investment goals ranging from wealth preservation to opportunistic growth. 

Lisa Shalett, the chief investment officer for wealth management, emphasized that while cryptocurrencies are increasingly popular, they remain “speculative assets” that not all investors will choose to pursue.

Currently, advisors are limited to offering Bitcoin funds from established firms like BlackRock and Fidelity. However, Morgan Stanley is actively observing the evolving landscape for potential expansions in its offerings, including broader crypto options. 

This initiative comes as major US banks, such as Bank of America and Citibank, explore the launch of stablecoins, signaling a transformative shift in the financial services sector.

Morgan Stanley is also monitoring developments in the stablecoin market. CFO Sharon Yeshaya has acknowledged the potential applications of stablecoins for their clientele, although she noted that it is still too early to assess their full impact on the firm’s operations. 

Featured image from DALL-E, chart from TradingView.com