Morgan Stanley applied for a de novo national trust bank charter to expand its crypto services. This aligns with recent OCC approvals for five other crypto
Application for Digital Trust Bank Charter
On February 18, Morgan Stanley applied for a de novo national trust bank charter with the Office of the Comptroller of the Currency (OCC). The new subsidiary, named “Morgan Stanley Digital Trust, National Association,” aims to expand its crypto services by providing custody and execution services for digital assets.
Crypto Expansion and Regulatory Landscape
This application aligns with Morgan Stanley’s recent efforts to integrate blockchain technology into its core business. In December 2023, 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. More recently, stablecoin platform Bridge, owned by Stripe, and Crypto.com have also received conditional approvals.
Scope of Services
According to public filings, Morgan Stanley’s new subsidiary will hold digital assets on behalf of clients, facilitating purchases, sales, swaps, transfers, and crypto staking. This expansion underscores the growing importance of digital assets in investment strategies and financial services.
Regulatory Framework for Trust Banks
A national bank trust charter allows institutions like Morgan Stanley 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 rather than an acquired one.
Strategic Moves by Morgan Stanley
Morgan Stanley has been actively expanding its crypto offerings. In January 2024, the bank appointed Amy Oldenburg to lead its new crypto unit. Job listings on LinkedIn indicate ongoing efforts to build out the digital assets team, including roles for a director of digital asset strategy and product lead.
Future Implications
Morgan Stanley’s application highlights the increasing interest in crypto from major financial institutions. This move could set a precedent for other banks seeking to integrate blockchain technology into their operations while ensuring compliance with regulatory requirements.
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