Updated
Updated · Markets Media · Jun 5
Morgan Stanley Lets Wealth Clients Lend Crypto for $5 Million ETP Access via Galaxy
Updated
Updated · Markets Media · Jun 5

Morgan Stanley Lets Wealth Clients Lend Crypto for $5 Million ETP Access via Galaxy

3 articles · Updated · Markets Media · Jun 5

Summary

  • Morgan Stanley Wealth Management launched a referral arrangement with Galaxy Digital that lets eligible clients lend cryptocurrencies and receive spot-crypto ETP shares, including the Morgan Stanley Bitcoin Trust.
  • Galaxy will cut the minimum transaction size for Morgan Stanley-referred clients to $5 million from $25 million, widening access for qualified investors using the program.
  • Onboarding for these transactions now can take more than four weeks; Morgan Stanley said the new setup may reduce that timeline by as much as 75% in some cases.
  • Under the model, clients lend assets such as Bitcoin, Ether or Solana to Galaxy, which then coordinates in-kind ETP share creation with an authorized participant and delivers the shares to the client account.
  • Morgan Stanley framed the arrangement as a way to fold digital assets into traditional portfolios more efficiently, with margin and lending capabilities, as Wall Street pushes deeper into crypto-linked wealth products.

Insights

Will Wall Street's partnerships with crypto firms reshape the entire digital asset industry?
What hidden risks do investors face by lending crypto versus just buying an ETF?
As banks create complex crypto products, can regulators keep pace to protect investors?