Morgan Stanley: Won't stop at Bitcoin; evaluating tokenized assets and crypto tax solutions

Morgan Stanley’s digital asset strategy chief Amy Oldenburg recently said: “We’re not stopping with Bitcoin. This is really about the longer journey, and we still have a long way to go.” According to a report by Decrypt, the Wall Street giant is broadly expanding its crypto allocation, ranging from Bitcoin ETFs to tokenized assets, crypto tax solutions, and direct trading services.

Tokenized money market funds: “Absolutely the direction of the future”

Oldenburg said tokenized money market funds are “absolutely the direction to move forward on the product roadmap.” The goal is to present traditional financial assets in digital form on the blockchain, spanning multiple asset classes. So far, there are precedents in the market: BlackRock’s BUIDL tokenized fund has grown to $2.3 billion, and Fidelity’s Digital Interest Token also holds about $172 million.

Exploring crypto tax-loss harvesting through Parametric

Morgan Stanley plans to explore tax-loss harvesting strategies for digital assets through its subsidiary Parametric. This strategy allows clients to offset capital gains tax by selling crypto positions at a loss—an approach that is common in traditional wealth management but has not yet been widely applied in the crypto space.

Bitcoin ETFs and more product lines

Morgan Stanley just launched its own spot Bitcoin ETF this week, recording approximately $46 million in net inflows on day one, with an expense ratio of only 0.14%. In addition, the company filed for Ethereum and Solana ETFs in January, and they are currently under review.

For direct trading, Morgan Stanley plans to provide crypto trading services through its E*TRADE platform in partnership with Zerohash. At the same time, the company is also exploring Bitcoin yield and lending services. Currently, more than 15,000 wealth management advisors at Morgan Stanley can recommend Fidelity and BlackRock’s third-party spot Bitcoin ETFs to eligible clients.

Crypto race among traditional financial giants

Morgan Stanley’s aggressive rollout reflects a fundamental shift in how Wall Street views crypto assets. From years ago when they were watching from the sidelines or even rejecting it, to now actively competing with ETFs, tokenization, tax tools, and direct trading, traditional financial institutions are turning cryptocurrency from a “special report” into a “product line.” Against the backdrop of Bitcoin recently breaking through $72,000, continued inflows of institutional capital are providing structural support to the market.

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