Morgan Stanley Seeks Trust Charter to Custody Crypto

• Proposed Morgan Stanley Digital Trust would operate as a de novo national trust bank without FDIC deposits.

• The trust plans crypto custody, trading, swaps, transfers, and staking for wealth and institutional clients.

• Filing follows OCC crypto trust approvals for BitGo, Fidelity Digital Assets, Paxos, and Ripple.

Morgan Stanley has applied for a national trust bank charter to custody Bitcoin and other digital assets. The filing was submitted on Feb. 18 to the Office of the Comptroller of the Currency. The proposed entity would operate nationwide from Purchase, New York, supporting crypto custody, trading, and staking.

Trust Charter Filing Details and Structure

The application lists the entity as Morgan Stanley Digital Trust, National Association. Notably, it would be a de novo trust bank, meaning a newly formed institution. The filing seeks full trust powers under federal supervision.

According to the application, the trust bank would not accept FDIC-insured deposits. Instead, it would focus on fiduciary administration and asset safekeeping. The entity would sit under Morgan Stanley Capital Management as an indirect wholly owned subsidiary.

The OCC confirmed receipt of the application on Feb. 18. It also opened a public comment period that runs through March 20. During its first three years, the trust would custody select digital assets and execute related transactions.

Services Planned for Wealth Management Clients

Morgan Stanley said the trust would serve its wealth management clients. These include individuals, businesses, and institutional investors. The services would support client investment activity on a fiduciary basis.

Specifically, the trust would handle crypto purchases, sales, swaps, transfers, and staking. These activities would support broader investment strategies rather than retail trading. The filing notes that national trust banks may conduct non-fiduciary custody activities without taking deposits.

According to Bloomberg and Forbes reports, this marks Morgan Stanley’s first crypto-focused trust charter. The filing follows the firm’s recent expansion across digital asset products. That expansion sets context for the new trust structure.

Broader Crypto Push and Industry Context

The trust application comes amid increased interest in crypto bank charters. In December, the OCC conditionally approved several crypto-related trust banks. These included BitGo, Fidelity Digital Assets, Paxos, and Ripple.

Morgan Stanley has also pursued crypto ETFs and tokenized asset offerings. It plans to launch crypto trading for E-Trade clients this year. Bitcoin, Ethereum, and Solana would be included initially.

According to Eric Balchunas, the filing reflects a deeper commitment to crypto access. He noted Morgan Stanley’s large advisor network and client base. The OCC currently supervises about 60 national trust banks in the United States.