Key Highlights
- Morgan Stanley filed an application with the OCC seeking a national trust bank charter specifically for digital asset custody operations
- The new entity, named “Morgan Stanley Digital Trust,” would offer cryptocurrency custody, trading, swaps, staking, and transfer services
- Citigroup plans to launch institutional bitcoin custody services by the end of this year, integrating them with traditional asset management systems
- Citi aims to provide unified account management allowing clients to manage bitcoin alongside securities and cash with cross-margining capabilities
- Wall Street’s largest banks are expanding crypto infrastructure to meet growing institutional demand for digital asset services
Morgan Stanley filed an application with the Office of the Comptroller of the Currency (OCC) requesting a de novo national trust bank charter. The February 18 filing identifies the entity as “Morgan Stanley Digital Trust, National Association.”
This charter application would authorize Morgan Stanley to offer digital asset custody solutions to institutional and retail clients. The proposed subsidiary would enable clients to buy, sell, swap, transfer, and stake various cryptocurrencies.
A national trust bank charter allows financial institutions to perform fiduciary functions including safeguarding and custodying assets. This marks Morgan Stanley’s first trust charter application focused entirely on digital currency operations.
Morgan Stanley has been aggressively pursuing cryptocurrency expansion initiatives. In January, the firm hired equity markets veteran Amy Oldenburg to lead its digital asset business and filed applications for spot Bitcoin and Solana ETFs, followed by a staked Ether ETF application.
The banking giant, overseeing roughly $8 trillion in client assets, is concurrently rolling out spot crypto trading features via its E*TRADE brokerage platform. The institution is also exploring lending services and yield-producing opportunities tied to digital assets.
Recent job listings indicate Morgan Stanley is actively hiring for roles including digital assets strategy director and digital assets product lead. The firm is also evaluating wallet technology integration across its wealth management infrastructure.
Citi Plans Institutional Bitcoin Custody
Citigroup announced plans to launch institutional bitcoin custody services within the calendar year. Nisha Surendran, leading Citi’s digital asset custody initiative, disclosed these plans at Thursday’s World Strategy Forum.
Surendran described the goal as making “bitcoin bankable.” Citi intends to integrate bitcoin into the same custody, reporting, and tax infrastructure currently used for traditional assets like equities and bonds.
Clients will be able to execute transactions via SWIFT messaging, APIs, or graphical user interfaces. Citi will handle all clearing and settlement operations on the backend.
The bank also plans to allow clients to hold bitcoin positions together with U.S. Treasuries, global bonds, and tokenized money market funds in a single custody account. This structure will support cross-margining between digital currency holdings and conventional asset classes.
Citi surveyed its institutional client base and found they prefer not to manage wallets and private keys themselves. Rather, they want bitcoin access through familiar banking infrastructure.
The Broader Push by Major Banks
Citi connects to more than 220 payment and settlement systems globally. The institution has launched Citi Token Services for treasury management, a 24/7 blockchain-based platform used for internal international fund movements.
JPMorgan has implemented a similar approach with its JPM Coin product. The New York Stock Exchange also announced plans for a 24/7 blockchain-powered trading venue for tokenized stocks and ETFs set to debut later in 2025.
The OCC granted conditional approval to five crypto-focused national trust bank applications in December, including Ripple, BitGo, Fidelity Digital Assets, and Paxos. Stablecoin platform Bridge, now owned by Stripe, and Crypto.com have since received conditional approvals.
Payoneer also filed a national trust bank charter application this month, potentially enabling it to issue stablecoins and provide digital asset services.
