Morgan Stanley Wealth Management has expanded its crypto offering by enabling eligible clients to convert digital asset holdings into spot crypto exchange-traded products through a new referral arrangement with Galaxy Digital.
Summary
- Morgan Stanley clients can now lend Bitcoin, Ether, and Solana to Galaxy Digital in exchange for shares in spot crypto investment products.
- Galaxy has reduced the minimum lending transaction size for Morgan Stanley referred clients to $5 million from $25 million.
According to a Friday announcement, high-net-worth Morgan Stanley clients can lend cryptocurrencies including bitcoin, ether, and Solana to Galaxy Digital and receive shares in spot crypto investment products in return, including the recently launched Morgan Stanley Bitcoin Trust.
The companies said the process allows investors to move crypto exposure into regulated investment vehicles without selling their digital assets first. The announcement added that the structure could reduce in-kind crypto-to-ETP onboarding times by as much as 75%.
Explaining the rationale behind the arrangement, Alison Nest, Head of Investment Solutions Products at Morgan Stanley, said the bank has been active in decentralized finance and views the referral capability with Galaxy as a way to help wealth management clients integrate digital assets into their portfolios through an institutional framework.
Nest said the arrangement creates a connection between traditional finance and decentralized finance while giving investors additional ways to diversify their holdings.
Morgan Stanley deepens digital asset push
The latest initiative arrives as Morgan Stanley continues to add new crypto-related products and services across its wealth management and brokerage businesses.
Earlier this year, the bank launched the Morgan Stanley Bitcoin Trust, a spot Bitcoin exchange-traded fund that completed its first month without recording a day of net redemptions, according to previous company disclosures.
Recent regulatory filings have also shown the bank expanding beyond Bitcoin products. In May, Morgan Stanley disclosed holdings in the Volatility Shares XRP ETF and the Grayscale XRP ETF, adding XRP-linked investment products to a crypto portfolio that already included Bitcoin and Ethereum exposure.
At roughly the same time, the firm submitted an updated registration statement for the Morgan Stanley Solana Trust, a proposed spot Solana ETF that would hold SOL directly and stake part of its assets through third-party providers. According to the filing, staking rewards generated from those holdings would contribute to the fund’s overall returns.
Crypto access has also extended to Morgan Stanley’s brokerage business. Through a pilot program launched on E*Trade in May, the bank began offering Bitcoin, Ether, and Solana trading through infrastructure provided by Zerohash.
Morgan Stanley executives said at the time that the initiative formed part of a strategy to keep clients within the firm’s investment ecosystem.
Leadership changes have accompanied the expansion. Amy Oldenburg, a longtime Morgan Stanley executive, was appointed earlier this year to lead the firm’s first dedicated digital asset strategy role.
Galaxy expands institutional services
For Galaxy Digital, the partnership adds another institutional channel to its lending and asset management business.
According to company figures, Galaxy generated $505 million in adjusted gross profit during 2025 from its trading, lending, asset management, and staking services division.
Only days before announcing the Morgan Stanley referral arrangement, Galaxy also introduced an institutional over-the-counter prediction market trading desk, adding another service aimed at professional investors.
