Morgan Stanley Targets Direct Crypto Custody With Trust Bank Application

Morgan Stanley has applied for a national trust bank charter to provide direct cryptocurrency custody for its institutional clients. This represents a major escalation in Wall Street’s push into the digital asset sector.

The $9 trillion banking giant filed the de novo application with the Office of the Comptroller of the Currency on February 18.

Morgan Stanley’s New OCC Bid to Rival BitGo and Anchorage

If approved, the charter would transform Morgan Stanley into a direct competitor to crypto-native custodians such as BitGo and Anchorage Digital, while testing the limits of traditional banking regulations.

The filing marks a significant shift in the competitive landscape. While the OCC has previously granted conditional trust charters to crypto-focused firms, a legacy wirehouse securing full approval would signal a major thaw in regulatory oversight.

Industry analysts attribute this renewed momentum to the Trump administration’s efforts to provide clearer federal guidelines for traditional financial institutions entering the digital asset space.

“People are going to be stunned this year — The world’s largest institutions and corporates are coming fully into crypto,” Hunter Horsley, Bitwise CEO, said.

Meanwhile, Morgan Stanley’s application outlines ambitious plans to offer custody, trading, and staking services under one roof.

So, the OCC filing is part of a bifurcated digital asset strategy that distinctly separates institutional wealth management from retail trading operations.

On the institutional side, the bank is actively investing in blockchain infrastructure. A recent job posting for a lead engineer revealed Morgan Stanley is building a platform for decentralized finance and real-world asset tokenization.

The role requires expertise in both public blockchains, such as Ethereum and Polygon, and private, permissioned networks like Hyperledger and Canton.

This highlights the bank’s intent to bridge walled-garden institutional assets with public network liquidity.

Simultaneously, Morgan Stanley is preparing a massive retail expansion.

The firm plans to launch direct cryptocurrency trading on its ETrade platform in the first half of 2026, offering Bitcoin, Ethereum, and Solana to everyday investors.

The ETrade integration represents a direct challenge to retail-focused exchanges like Coinbase and Robinhood.

Indeed, this dual approach underscores a broader trend among traditional financial titans.

Encouraged by a more accommodating regulatory environment in Washington, legacy banks are rapidly accelerating their crypto roadmaps. They are now hiring specialized Web3 talent and transitioning from passive exchange-traded fund facilitation to core infrastructure development.