Morgan Stanley has set up a Digital Asset Lab to test stablecoins, tokenization and DeFi applications, Bloomberg reported on September 29. The lab extends a bank that already runs a spot Bitcoin ETF, Ethereum and Solana ETFs, and crypto trading on E*Trade.
The bank is exploring how blockchain-based use cases could extend into its own business, testing tokenization and decentralized finance applications alongside stablecoins.
Testing tokenized deposits and automated vaults
The lab sits inside Morgan Stanley's existing network of innovation labs, letting employees explore emerging technology without putting the bank's core systems at risk. Megan Brewer, who leads market innovation and labs at the firm, said the bank will explore tokenized deposits, central bank digital currencies, money-market funds and DeFi vaults that could automate investment strategies around the clock.
Building on an ETF and trading push
Morgan Stanley has been moving deeper into crypto for months. The bank already lets clients trade Bitcoin, Ethereum and Solana through its E*Trade platform, and it became the first bank to launch a spot Bitcoin ETF with the Morgan Stanley Bitcoin Trust in April.
The firm also gained approval for Ethereum and Solana ETFs that charge a 0.14% fee and are structured to pass staking rewards through to investors. Morgan Stanley Investment Management separately launched the Stablecoin Reserves Portfolio, a money-market fund built around stablecoin reserves.
Exposure to XRP
Morgan Stanley has also disclosed XRP holdings through ETFs and increased its stake in Armada Acquisition Corp II, the SPAC partner of Ripple-backed Evernorth Holdings. The moves indicate the bank's interest in XRP as it weighs further ETF and trading options tied to the token.
Source: CoinGape
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