Morgan Stanley is making a bold move in the crypto space with its application for a de novo national trust bank charter, aimed at enhancing its digital asset custody services. The filing, submitted to the Office of the Comptroller of the Currency (OCC) on February 18 under the name ‘Morgan Stanley Digital Trust, National Association,’ marks a significant step in the bank’s crypto expansion strategy.
Details of the Application
According to reports from Bloomberg and Forbes, Morgan Stanley’s new subsidiary will focus on custodial services for digital assets, including the execution of purchases, sales, swaps, and transfers to support client investment activities. The charter also allows for crypto staking, a feature that could attract institutional investors looking to earn passive income from their crypto holdings.
The Significance of a National Trust Charter
A national bank trust charter authorizes a financial institution to engage in fiduciary activities such as trust services, custody, and asset safekeeping. The term ‘de novo’ indicates that this is a newly created entity, not an acquired one. Morgan Stanley’s application is one of 14 de novo bank charters filed in 2025, reflecting a growing trend of traditional financial institutions seeking to integrate crypto services into their offerings.
The Rush for Crypto Bank Charters
Morgan Stanley is not alone in its pursuit of a crypto-focused national trust charter. In December, the OCC conditionally approved five applications for crypto-related national trust banks, including First National Digital Currency Bank, Ripple, BitGo, Fidelity Digital Assets, and Paxos. This trend highlights the increasing demand for regulated and secure crypto custody solutions.
Morgan Stanley’s Crypto Expansion
Morgan Stanley has been steadily expanding its presence in the crypto market. In January, the bank appointed equity markets executive Amy Oldenburg to lead its new crypto unit. The company has also been actively hiring, with job listings on LinkedIn advertising positions for digital assets strategy director, digital assets strategist, and digital assets product lead. Additionally, Morgan Stanley filed to launch spot Bitcoin (BTC) and Solana (SOL) exchange-traded funds (ETFs), followed by a staked Ether (ETH) ETF.
Forward-Looking Insights
Morgan Stanley’s move to secure a national trust charter for crypto custody is a clear indication of the growing institutional interest in digital assets. As more traditional financial players enter the crypto space, the regulatory landscape is expected to evolve, providing greater clarity and stability for both investors and the broader market. This shift could potentially lead to increased adoption and mainstream acceptance of cryptocurrencies, paving the way for a more integrated financial ecosystem.
About the Author
