DeFi & NFT

Story: Morgan Stanley Gets OCC Green Light to Build Its Own Crypto Custody Bank

By Maheen Hernandez

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What Morgan Stanley Digital Trust Will Actually Do. The proposed service list covers custody, transaction administration, fiduciary staking, and…

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The Capital and Liquidity Bar Is High. Before Morgan Stanley Digital Trust can actually open for business, it has to clear two hard…

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Third-Party Providers Are Watching Closely. The firms most exposed here are crypto-native intermediaries whose business overlaps with what…

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Morgan Stanley got conditional approval from the Office of the Comptroller of the Currency in June to charter a national trust bank for digital assets.

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The OCC classified the application as a new bank charter under a holding company with requested trust powers. That's the formal framing.

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The proposed service list covers custody, transaction administration, fiduciary staking, and collateral administration for digital-asset lending.

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For clients of Morgan Stanley Wealth Management, the pitch is cleaner: fewer counterparties, one regulated framework, tighter operational control. That's the upside.

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And those pieces matter. Custody and collateral administration aren't just back-office functions. They're where trust lives in this industry, and they're where the fees pile up.

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The OCC granted preliminary approval on June 18, per Corporate Decision 1378.

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Before Morgan Stanley Digital Trust can actually open for business, it has to clear two hard requirements. First: a minimum of $50 million in Tier 1 capital.

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Related: Blockchain.com Brings Polymarket to 43 Million Users With In-App Prediction Trading

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That's a serious bar. Fifty million in Tier 1 capital isn't pocket change even for a firm Morgan Stanley's size — it's a deliberate signal from the OCC that digital asset trust…

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Morgan Stanley can almost certainly meet both requirements. But it still has to demonstrate that it has, formally, before final authorization lands.

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The firms most exposed here are crypto-native intermediaries whose business overlaps with what Morgan Stanley Digital Trust plans to offer.

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It's not a death sentence for any of them. Morgan Stanley isn't the whole market. But the signal is clear: when a Wall Street firm of this scale decides to internalize these…

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