Morgan Stanley Seeks OCC National Trust Charter to Offer Crypto Custody, Trading and Staking
Morgan Stanley filed on Feb. 18 to form Morgan Stanley Digital Trust, a de novo national trust bank charter application with the US Office of the Comptroller of the Currency (OCC). The proposed bank, headquartered in Purchase, New York, would offer federally regulated crypto custody, legal custody assurances, trading (purchases, sales, swaps, transfers) and fiduciary staking services nationwide if approved. The filing confirms planned custody and execution for major tokens (explicit filings and corporate actions tie the bank to Bitcoin, Ether and Solana activity) and aligns with the firm’s recent moves: S‑1 ETF filings for BTC, ETH and SOL, hiring a head of digital-asset strategy (Amy Oldenburg), and plans to enable E*Trade customers to trade spot crypto via partners with potential future native custody. The application places Morgan Stanley alongside other financial firms pursuing OCC national trust charters and signals a broader Wall Street shift toward institutional crypto services amid clearer US regulatory guidance. For traders: approval could expand institutional custody and staking capacity, deepen liquidity, and raise institutional participation — factors that tend to support market maturation and may reduce custody counterparty risk for major tokens.
Bullish
The application signals increased institutional infrastructure for major crypto assets. Federally chartered custody and fiduciary staking by a major bank reduces counterparty and regulatory risk, which can attract more institutional capital and long-term holders. In the short term, the market reaction may be muted or show modest positive movement as approval is not guaranteed and will take time; traders may see increased demand anticipation priced into BTC, ETH and SOL. In the medium to long term, if the OCC approves the charter, expect higher institutional custody flows, deeper liquidity and greater participation in staking — structural supports that are generally bullish for the prices of the mentioned tokens. Downside risks remain: regulatory setbacks, delays, or decisions that restrict assets or services could limit the positive impact. Overall, the net expected price effect on the mentioned cryptocurrencies is positive, particularly for BTC, ETH and SOL due to Morgan Stanley’s explicit ETF and custody links.