- Morgan Stanley Wealth Management partnered with Galaxy Digital, expanding into crypto.
- The bank will now let eligible clients lend crypto and receive spot crypto ETP shares.
- Clients can use Bitcoin (BTC), Ether (ETH), and Solana (SOL) to obtain ETP exposure.
Morgan Stanley Wealth Management announced a new referral arrangement with Galaxy Digital. The initiative allows eligible clients to lend cryptocurrencies to Galaxy and receive shares of spot crypto exchange-traded products in return, including the Morgan Stanley Bitcoin Trust (MSBT).
The structure is aimed at investors who already hold digital assets and want to move part of that exposure into traditional investment products without going through separate liquidation and purchase processes.
Alison Nest, head of investment solutions products at Morgan Stanley Wealth Management, said the firm has been building its digital asset capabilities for years and views the arrangement as another step toward integrating crypto into mainstream portfolios.
Clients Can Convert Crypto Into ETP Exposure
Morgan Stanley will provide educational resources and refer eligible clients to Galaxy. Under Galaxy’s framework, clients can lend digital assets such as Bitcoin, Ether, and Solana.
Once Galaxy determines that the loan can be settled through ETP shares, it coordinates an in-kind creation with an authorized participant. Those shares are then delivered directly into the client’s account.
The process is designed to help investors move from crypto holdings into regulated products while keeping those assets inside broader wealth management portfolios. Clients can also access margin and lending capabilities that come with traditional brokerage accounts.
Zane Glauber, Galaxy’s global head of distribution, said the model offers an efficient and secure path for investors seeking spot crypto exposure through institutional channels.
Related: Morgan Stanley Launches Stablecoin Reserves Portfolio for Issuers
Onboarding Time Drops and Access Expands
The arrangement addresses one of the biggest friction points in institutional crypto transactions. Current onboarding timelines can take more than four weeks. Morgan Stanley and Galaxy estimate the new process could reduce onboarding time by as much as 75% in some cases.
Galaxy is also lowering the minimum transaction requirement for Morgan Stanley-referred clients. Previously set at $25 million, the threshold has been reduced to $5 million.
The lower minimum broadens access to qualified investors and opens the door to smaller institutions and family offices that previously may not have met the requirements.
MSBT Has Seen Strong Early Demand
The announcement comes after Morgan Stanley’s Bitcoin Trust recorded one of the strongest debuts among US spot Bitcoin products.
According to SoSoValue data, MSBT attracted $193.6 million in net inflows between April 8 and May 7. Assets under management reached $239.6 million during the fund’s first month.
The ETF posted 17 days of inflows and five sessions with flat flows. It did not record a single day of net outflows during that period. The launch also marked the first spot Bitcoin ETF introduced by a major US bank.
Related: NYSE Hosts Morgan Stanley to Mark MSBT Bitcoin ETF Milestone
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