Morgan Stanley is making significant strides in the digital asset sector by developing a new crypto wallet. This initiative is part of the bank”s broader strategy to introduce regulated investment products linked to Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The anticipated launch of the wallet is set for late 2026.
According to a report from Barron”s, the Wall Street giant, which manages nearly $9 trillion in assets, is intensifying its focus on digital assets. The upcoming wallet aims to offer custody and transaction functionalities for tokenized assets, targeting institutional investors and high-net-worth clients. This development is expected to bridge the gap between traditional wealth management and blockchain technology, enabling the backing of tokenized versions of both public and private market assets.
In conjunction with its wallet development, Morgan Stanley is enhancing its connections in private markets through partnerships with firms like Carta. This collaboration will allow the bank to provide specialized wealth management services to employees of private companies. Additionally, the acquisition of EquityZen will offer customers opportunities to invest in private-company shares, thereby reducing friction in private transactions and enhancing liquidity as companies prepare to go public.
The bank has also submitted applications for ETFs associated with Bitcoin, Ethereum, and Solana. These ETF filings underscore the competitive landscape for offering regulated crypto investment products, aligning digital assets with existing portfolio structures. The ETF offerings are likely to be made available through the E*Trade platform, with new relaxations on the limits for wealth clients” crypto exposure.
Moreover, Morgan Stanley has announced plans for in-kind creations and redemptions related to its forthcoming Ethereum trust. While specific details around the exchange, trading symbol, or custody arrangements remain undisclosed, the ETFs are expected to be accessible to eligible investors, pending necessary regulatory approvals.
This comprehensive approach, which includes the wallet”s development and the introduction of cryptocurrency ETFs, is designed to create a structured framework for crypto investments that emphasizes compliant access, secure custody, and long-term portfolio alignment.
