It supports Morgan Stanley’s crypto ETF filings and digital wallet launch.
Morgan Stanley has taken a formal step to expand its digital currency services. The financial firm submitted an application on February 18 to the Office of the Comptroller of the Currency (OCC) seeking permission to create a new trust bank.
The proposed entity would be called Morgan Stanley Digital Trust, National Association. According to public records, the main office would be located in Purchase, New York. The application lists John Ryan as chairman and chief executive, with Chad Turner as president and Amanda Kan as chief operating officer.
A national trust bank charter allows a company to hold assets for customers across all states without needing separate licenses for each one. Morgan Stanley’s filing indicates the new bank would support its Wealth Management division by bringing client crypto holdings onto its platforms.
These include holding cryptocurrencies on behalf of clients, buying and selling tokens, and moving them to support investment strategies. The filing also mentions the trust would offer staking services, where customers can earn rewards for helping verify transactions on certain blockchain networks.
The application suggests the bank would issue stablecoins and tokenized versions of traditional assets. Stablecoins are digital tokens designed to maintain a fixed value, usually tied to a currency like the U.S. dollar.
BNY Mellon and State Street have also pursued similar capabilities as federal regulators have become more open to banks handling digital assets.
The trust bank would be wholly owned by Morgan Stanley Capital Management, a subsidiary of the parent company. The leadership team draws from Morgan Stanley’s existing banking operations. John Ryan, Chad Turner, and Amanda Kan would lead the new entity alongside Perren Wong and John Burns, who are also listed as organizers.
The OCC has posted a public notice about the application. Anyone wishing to comment has 30 days from the publication date to submit written remarks to the agency’s licensing director.
The trust bank filing represents one piece of a wider strategy by Morgan Stanley to offer digital asset products. In early January, the firm filed registration statements with the Securities and Exchange Commission for Bitcoin and Solana exchange-traded products.
Days later, Morgan Stanley added a filing for an Ethereum trust that would also stake part of its holdings and distribute rewards to shareholders. The Ethereum trust would hold ether directly and value shares daily based on pricing from major trading platforms.
The wallet would support tokenized assets, including traditional securities and private equity investments. This wallet would complement the bank’s existing workplace financial services and private-market investing offerings.
Morgan Stanley’s wealth management division has observed that many clients hold crypto assets outside the firm’s platforms. Bringing these assets in-house through a regulated trust bank would give the bank more direct oversight and could open new revenue streams.
The bank plans to allow E*Trade customers to trade spot cryptocurrencies before introducing its own custody and exchange platform. Morgan Stanley is also exploring Bitcoin-backed lending and other yield products as part of its digital asset plans.
Amy Oldenburg, Morgan Stanley’s head of digital assets, said at a conference that the bank aims to build its own infrastructure and reduce reliance on outside technology providers.
The application arrives as U.S. banking regulators have taken a more accommodating stance toward crypto services. In December, the OCC allowed banks to act as intermediaries on cryptocurrency transactions.
Several crypto companies have recently obtained or sought national trust bank charters to issue stablecoins that comply with the proposed GENIUS Act. This legislation would set federal standards for stablecoin issuers.
The public comment period on Morgan Stanley’s application will determine whether the OCC grants final approval. If approved, Morgan Stanley Digital Trust would operate as a nationally chartered trust bank focused entirely on digital asset services.
