Morgan Stanley Moves to Launch a Crypto Trust Bank

In Brief

• Morgan Stanley applied for a national trust bank charter on February 18, 2026.
• The proposed entity would provide regulated digital asset custody services.
• The move signals deeper Wall Street integration into crypto infrastructure.

Morgan Stanley has applied for a national trust bank charter that would allow the firm to custody digital assets under U.S. regulatory oversight. The firm could hold and manage digital assets for clients within a federally supervised framework. Unlike a full-service commercial bank, a national trust bank focuses on fiduciary and custody activities rather than traditional lending.

Morgan Stanley already offers wealth management and brokerage services to institutional and high-net-worth clients. Therefore, the charter application marks a formal step toward expanding digital asset capabilities inside a regulated banking structure. In doing so, the filing positions the firm among large financial institutions seeking direct oversight while building crypto custody infrastructure.

A Regulated Path Into Digital Asset Custody

The national trust charter would allow Morgan Stanley to provide custody, safekeeping, and transfer services for digital tokens. By operating under OCC supervision, the firm could align crypto services with established banking compliance standards.

Custody remains a core bottleneck in institutional adoption. For example, asset managers, family offices, and corporations require secure storage solutions governed by federal oversight. As a result, a trust bank structure addresses that demand without exposing the parent company to retail deposit-taking risks.

Several financial institutions have pursued similar charters in recent years. In this context, Morgan Stanley’s move reflects growing client demand for regulated access to digital markets. Wealth management divisions increasingly field inquiries about token storage, portfolio allocation, and secure settlement.

The trust model offers structural clarity. The entity would segregate client assets, maintain fiduciary responsibilities, and follow capital requirements established by regulators. Consequently, that framework could strengthen confidence among conservative investors who prefer federally supervised institutions.

Wall Street Deepens Its Digital Infrastructure Bet

The application highlights a broader shift across major banks. Rather than limiting crypto exposure to trading desks or investment products, large firms now build core infrastructure. Custody often serves as the foundation for broader services such as token transfers, staking support, and digital asset administration.

Morgan Stanley’s decision also aligns with evolving regulatory guidance. In recent years, U.S. authorities have clarified pathways for banks to engage in crypto custody under appropriate safeguards. By pursuing a charter, the firm signals long-term commitment rather than opportunistic experimentation.

If approved, Morgan Stanley would join a small group of federally supervised institutions offering dedicated digital asset custody. That status would allow the firm to compete more directly with specialized crypto custodians while leveraging its existing client base.

The filing does not guarantee immediate service expansion. Regulators must review capital plans, governance structures, and risk controls before granting approval. Nevertheless, the move underscores accelerating institutional integration of blockchain-based assets.

Morgan Stanley has taken a formal step toward embedding digital asset services inside traditional banking architecture. The outcome of the charter review will determine how quickly the bank can put that strategy in operation. Still, the direction signals clear intent: Wall Street continues to build infrastructure for the next phase of digital finance.