Morgan Stanley Files for Federal Trust Charter to Offer Crypto Custody and Staking

Morgan Stanley has formally applied for a de novo national trust bank charter with the US Office of the Comptroller of the Currency (OCC) to establish a subsidiary dedicated to digital asset custody, trading, and staking services for institutional and retail investment clients.

The February 18, 2026 application for the “Morgan Stanley Digital Trust National Association” aims to bring cryptocurrency services under a direct federal banking framework, marking a significant expansion of the Wall Street firm’s digital asset strategy amid a broader industry push into regulated crypto markets.

Application and Scope of Services

The application outlines a comprehensive plan for the proposed trust bank. The Purchase, New York-headquartered subsidiary would provide “a comprehensive array of financial services and solutions to individual investors, small- to medium-sized businesses and larger institutions.”

Core activities outlined in the application include:

• Digital Asset Custody: Providing institutional-grade safekeeping for client digital assets under federal oversight.

• Trading Services: Conducting the purchase, sale, swap, and transfer of digital assets to support client investment activities.

• Staking Facilitation: Enabling customers to stake digital assets on a fiduciary basis, allowing them to earn yields on their holdings.

The services are intended to be offered throughout the United States, leveraging Morgan Stanley’s existing wealth management infrastructure.

Strategic Context and Industry Positioning

Morgan Stanley’s charter application is the latest in a series of moves to deepen its presence in the digital asset sector. In January 2026, the firm appointed veteran executive Amy Oldenburg to the newly created role of Head of Digital Asset Strategy. During the Strategy World 2026 conference in Las Vegas, Oldenburg outlined the firm’s roadmap, emphasizing the need for internal infrastructure development.

“We really need to build this out internally, we can’t just primarily rent the technology to do this,” Oldenburg stated, adding that client expectations for the Morgan Stanley brand necessitate a “no-fail” approach to asset custody. The firm manages approximately $8 trillion in assets and recognizes that a significant portion of its clients currently hold crypto off-platform.

In parallel with the charter application, Morgan Stanley has filed registration statements with the US Securities and Exchange Commission (SEC) to launch spot Bitcoin, Ether, and Solana exchange-traded funds (ETFs). The firm is also rolling out spot crypto trading on the E*TRADE platform through a partnership with ZeroHash, with the trust charter intended to support broader custody and exchange capabilities.

Regulatory Environment and Oversight

The application arrives amid significant shifts in the US digital asset regulatory landscape. The OCC, under Comptroller Jonathan Gould, has been approving national trust charters at an accelerated pace for both crypto-native firms and traditional financial institutions.

Recent regulatory developments facilitating bank entry into crypto include:

• SEC guidance permitting state-chartered trust companies to be treated as banks for digital asset custody purposes.

• CFTC staff no-action relief allowing futures commission merchants to accept non-securities digital assets, including Bitcoin and Ether, as customer collateral.

• Enactment of the GENIUS Act in July 2025, establishing a federal framework for payment stablecoin issuance and supervision.

The OCC has granted conditional approvals to several digital asset firms in recent months, including Crypto.com, Stripe subsidiary Bridge, Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos. Morgan Stanley’s application represents a Wall Street incumbent seeking equivalent regulatory standing to compete in the same trust charter framework.

Parallel Industry Developments: Citi’s Crypto Integration

Morgan Stanley’s application coincides with parallel initiatives at other major financial institutions. Citigroup © announced plans to launch institutional bitcoin custody later in 2026, aiming to integrate the cryptocurrency into the same custody, reporting, and tax frameworks used for traditional assets.

Nisha Surendran, head of Citi’s digital asset custody product development, described the initiative as an effort to “make bitcoin bankable” by allowing clients to manage bitcoin positions alongside securities and cash within a single master safekeeping account. Citi intends to enable cross-margining between digital and traditional assets, with client transactions executable via SWIFT, APIs, or user interfaces.

These developments reflect institutional investor demand for cryptocurrency exposure within familiar banking systems, as well as the need for infrastructure supporting 24/7 markets for assets like bitcoin.

Industry Perspectives and Stakeholder Considerations

The proliferation of national trust charter applications has drawn attention from banking trade groups. Some industry associations have argued that charters granted to digital asset firms may stretch the intended purpose of the trust bank framework and could pose risks to consumers and the broader financial system.

OCC Comptroller Jonathan Gould has defended the chartering process, stating that bringing digital asset firms under direct federal supervision enhances oversight and consumer protection. For traditional banks like Morgan Stanley, obtaining a national trust charter provides regulatory clarity and establishes a federal framework for digital asset activities that might otherwise be conducted through state-chartered entities or unregulated subsidiaries.

Frequently Asked Questions (FAQ)

What specific activities will the Morgan Stanley Digital Trust National Association perform?

The trust bank will custody digital assets, conduct trading activities (including purchase, sale, swap, and transfer of digital assets), and facilitate client staking of digital assets on a fiduciary basis.

How does this application relate to Morgan Stanley’s existing crypto initiatives?

The charter application supports broader firm initiatives including spot crypto trading on E*TRADE, filed registrations for Bitcoin, Ether, and Solana ETFs, and development of proprietary wallet technology. The trust bank would provide the regulated custody infrastructure underlying these client-facing services.

What is the current status of OCC national trust charter approvals for digital asset firms?

The OCC has recently granted conditional approvals to multiple digital asset firms including Crypto.com, Stripe’s Bridge subsidiary, Ripple, Circle, BitGo, Fidelity Digital Assets, and Paxos. The agency continues to process applications from both crypto-native companies and traditional financial institutions seeking to provide digital asset services under federal banking supervision.