Morgan Stanley Wealth Management will enable its high-net-worth clients to lend their crypto assets to Galaxy Digital in return for shares in spot crypto exchange-traded products, including the recently launched Morgan Stanley Bitcoin Trust (MSBT), according to an announcement on Friday.
Letting clients convert cryptocurrencies, including bitcoin, ether, and solana, into traditional investment vehicles without cashing out could cut in-kind crypto-to-ETP onboarding times by up to 75%, the announcement said. As part of the arrangement, Galaxy is also reducing its minimum lending transaction for Morgan Stanley‑referred clients to $5 million, from $25 million.
"Morgan Stanley has been investing in the DeFi space for some time, and we are proud to support a referral capability with Galaxy to provide Wealth Management clients with an institutionalized pathway that helps integrate digital assets into their portfolio," Morgan Stanley Head of Investment Solutions Products Alison Nest said. "This referral arrangement represents a significant step forward in bridging traditional finance and decentralized finance, providing more investors with streamlined opportunities to diversify."
The move comes as Morgan Stanley ramps up its crypto activity, largely driven by crypto bill Amy Oldenburg, a Morgan Stanley vet who was tapped to lead the firm’s first digital asset strategy role earlier this year.
In addition to launching a bitcoin ETF, the firm has begun piloting spot crypto trading through an E-Trade tie-up and rolled out the Stablecoin Reserves Portfolio (MSNXX) money market fund. The Morgan Stanley Bitcoin Trust, launched on April 8, completed its first month without recording a single day of net redemptions, an unmatched streak.
Galaxy saw $505 million in adjusted gross profit in 2025 from its trading, lending, asset management, and staking services unit. Adding to its financial services offerings, Galaxy rolled out an institutional over-the-counter prediction-market trading desk earlier this week.