Morgan Stanley: US Banks Likely to Add Bitcoin to Balance Sheets

Amy Oldenburg, head of digital asset strategy at Morgan Stanley, stated at a Bitcoin conference in Las Vegas that there is a high probability US banks will include Bitcoin in their financial statements in the future. However, Oldenburg emphasized that regulatory barriers remain a significant variable, and several challenges must be resolved before this occurs.

Regulatory Pathway and Challenges

Oldenburg explained that for US banks to include Bitcoin on their balance sheets in the long term, multiple obstacles must be addressed. According to Oldenburg, large banks like Morgan Stanley need approval from the Federal Reserve, compliance with Basel capital standards, and authorization from multiple global regulators in order to hold Bitcoin.

Despite these barriers, Oldenburg noted that the recent regulatory environment has become more favorable for the expansion of digital asset businesses.

Morgan Stanley’s Bitcoin Product Launch

Morgan Stanley recently launched MSBT, a Bitcoin-linked exchange-traded product (ETP). Oldenburg cited MSBT as an example of a US bank’s first Bitcoin-backed ETP product. According to Oldenburg, MSBT attracted over $100 million in funding in its first six days after launch.

Oldenburg emphasized that all of these fund inflows were in the form of investments directed by clients themselves. She stated, “Despite not yet being offered as an advisory service within the asset management platform, there has been strong demand.”