Morgan Stanley Clients Can Now Lend Crypto for Spot ETF Conversions

Morgan Stanley Wealth Management will let its high-net-worth clients lend their crypto assets to Galaxy Digital in exchange for shares in spot crypto exchange-traded products, including the recently launched Morgan Stanley Bitcoin Trust (MSBT), according to a Friday announcement. Allowing clients to convert bitcoin, ether, and solana into traditional investment vehicles without selling the underlying assets could trim in-kind crypto-to-ETP onboarding times by up to 75%, the announcement said. Galaxy is also lowering its minimum lending transaction for Morgan Stanley‑referred clients to $5 million, down 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 tapped to lead the firm's first digital asset strategy role earlier this year. Beyond 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—because apparently even stablecoins now need a mutual fund wrapper.

The Morgan Stanley Bitcoin Trust, launched on April 8, completed its first month without a single day of net redemptions, an unmatched streak in an industry where investors typically bolt at the first sign of volatility. Galaxy reported $505 million in adjusted gross profit in 2025 from its trading, lending, asset management, and staking services unit. The firm also rolled out an institutional over-the-counter prediction-market trading desk earlier this week.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures. © 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.