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Morgan Stanley’s digital assets head Amy Oldenburg said US banks may hold Bitcoin directly on their balance sheets in the future, but only after regulation improves. Speaking at the Bitcoin Conference in Las Vegas, Oldenburg discussed institutional Bitcoin adoption, Morgan Stanley’s plans, and the policy hurdles slowing wider bank participation.
She told attendees that direct Bitcoin ownership by banks “is not out of the question.” Still, she said, lenders now face major regulatory uncertainty. The Federal Reserve and global rules from the Basel Committee on Banking Supervision currently restrict direct BTC holdings. As a result, banks must navigate several layers of oversight.
Even if US regulators allow direct holdings, Morgan Stanley would still need approval across many markets. The bank operates globally, so dozens of regulators shape its Bitcoin strategy.
Oldenburg said Morgan Stanley has spent many years in the broader digital asset market. She added that a more supportive regulatory environment has helped that involvement expand. At the same time, current rules still limit how far banks can go with Bitcoin. For now, institutions can offer products, but direct balance sheet exposure remains harder.
Morgan Stanley has moved deeper into Bitcoin through its spot ETF. Two weeks ago, it became the first major US bank to issue its own Bitcoin spot ETF.
The ETF trades under the ticker MSBT. It recorded $25 million in first-day trading and reached $100 million in assets by the end of its first week. Bloomberg ETF expert Eric Balchunas placed the launch among the “top 1% of ETF launches.” Oldenburg said the early demand came only from self-directed accounts.
Oldenburg noted that Morgan Stanley’s financial advisors have not yet started offering the ETF. That detail made the early asset growth more notable within the bank’s Bitcoin strategy. Bitcoin ETFs have become one of the largest areas in crypto markets. BlackRock leads the sector, with its iBIT ETF holding over $60 billion in assets.
Meanwhile, BlackRock’s European iShares ETF has also crossed $1 billion in assets. It now holds more than 14,000 BTC, according to the provided figures. Morgan Stanley advises clients to allocate 2% to 4% of their assets to Bitcoin. Oldenburg said the bank focuses on BTC rather than broad crypto exposure.
She also said Morgan Stanley invests heavily in client education. The bank wants clients to understand Bitcoin’s role in portfolio diversification and how it differs from other digital assets.
Read More: Bitcoin News Today: Morgan Stanley BTC Holdings Top $100M as BTC Falls Below $76K
Beyond Bitcoin, Morgan Stanley Investment Management has moved into stablecoin reserves. It launched the Stablecoin Reserves Portfolio, a government money market fund for stablecoin issuers. The fund trades under the ticker MSNXX and went live on April 23. It targets stablecoin issuers that need reserve assets with daily liquidity.
The portfolio invests in cash, short-term US Treasury bills and notes, and overnight repurchase agreements backed by Treasuries. It targets a stable $1.00 net asset value. The product also aligns stablecoin issuers with reserve needs linked to the GENIUS Act.
Crypto.news reported that the fund has a $10 million minimum investment, a 0.15% management fee, and a 0.20% net expense ratio after waivers. At press time, Bitcoin traded just below $80,000. It rose 2% in the past day, while trading volume climbed 110% to $34 billion after the weekend slowdown.
Morgan Stanley sees a future where US banks may hold Bitcoin directly, but regulatory clarity remains the main barrier. Amy Oldenburg pointed to the bank’s Bitcoin ETF, client education, and stablecoin reserve fund as signs of deeper institutional digital asset adoption.
