Morgan Stanley: To include Bitcoin on bank balance sheets, it needs to overcome 3 regulatory hurdles

According to public remarks made by Amy Oldenburg, Head of Digital Assets Strategy at Morgan Stanley, at the Bitcoin 2026 conference held in Las Vegas from April 27 to 29, she said that it is “not entirely impossible” for Bitcoin to appear on the balance sheet of U.S. banks, but multiple major regulatory hurdles still need to be overcome.

Three regulatory hurdles for banks to hold Bitcoin

According to Amy Oldenburg’s remarks at the Bitcoin 2026 conference, for Bitcoin to be included on the balance sheets of large banks such as Morgan Stanley, it currently faces three key regulatory hurdles:

First, the Federal Reserve (Fed) has not yet issued clear regulatory guidance; second, the Basel Committee has assigned a 1,250% risk weight to unbacked crypto assets, making it economically unviable for large banks to hold Bitcoin directly; third, consensus and approvals are needed from multiple regulators worldwide.

Oldenburg said: “We have been deeply engaged in the digital assets space for years, and now, the regulatory environment is also more supportive than ever for us to really show what we can do.”

Robin Vince, CEO of BNY Mellon, also said in March 2026 that large financial institutions will play the role of a bridge between traditional finance and digital assets; Vince emphasized that regulatory clarity remains the top prerequisite before institutions decide to “fully commit.”

MSBT launch performance and E*Trade direct trading plan

According to public information, Morgan Stanley launched MSBT on April 8, 2026, marking the first Bitcoin spot ETP product issued by a U.S. chartered bank; during the first six trading days after launch, it raised more than $100 million, and its assets under management in the first month reached $233 million, with the funds coming mainly from customers’ self-directed trading.

Amy Oldenburg said that, currently, 80% of ETP investment positions on Morgan Stanley Wealth Management’s platform come from customers’ self-directed trading, and the firm has launched an internal training program to improve wealth advisors’ digital-asset knowledge; meanwhile, it also recommends that certain customers allocate 2% to 4% of their assets to Bitcoin. MSBT currently uses a dual custody model, with Coinbase and BNY Mellon jointly responsible for asset custody. In addition, Morgan Stanley plans to roll out direct crypto spot trading functionality for E*Trade customers in the first half of 2026.

OCC digital trust license application: MSDTNA

According to public information, Morgan Stanley submitted an application to the OCC for a national trust bank license on February 18, 2026, planning to establish an independent subsidiary entity, Morgan Stanley Digital Trust, National Association (MSDTNA); the public comment period ended on March 20, 2026, and the OCC’s review result is still pending publication.

MSDTNA’s planned scope of business covers crypto asset custody, dealing, swaps, and transfers, as well as staking services for customers under the duties of a trustee.

FAQ

What exactly are the three regulatory hurdles Amy Oldenburg pointed out at the Bitcoin 2026 conference?

According to Amy Oldenburg’s remarks at the Bitcoin 2026 conference (April 27 to 29, 2026, Las Vegas), the three hurdles are: the Fed still lacks clear guidance, the Basel Committee assigns a 1,250% risk weight to unbacked crypto assets, and consensus and approvals are needed from multiple regulators worldwide.

What are the timing and applicant entity for Morgan Stanley’s OCC digital trust license application?

According to public information, Morgan Stanley submitted its application to the OCC on February 18, 2026, planning to establish a new entity, Morgan Stanley Digital Trust, National Association (MSDTNA). The public comment period ended on March 20, 2026; MSDTNA’s business scope includes crypto custody, trading, and staking services.

What are the launch date and asset-size performance of Morgan Stanley’s MSBT since its listing?

According to public information, MSBT launched on April 8, 2026 as a Bitcoin spot ETP, the first such product launched by a U.S. chartered bank; within the first six trading days after launch, it raised more than $100 million, and its assets under management reached $233 million in the first month.