MS Seeks National Trust Bank Charter: What it Means & Why it Matters

Morgan Stanley MS has applied to the U.S. Office of the Comptroller of the Currency (“OCC”) for a de novo national trust bank charter for a proposed entity called Morgan Stanley Digital Trust, National Association. This, first reported by Bloomberg, will let the Wall Street giant to take custody of cryptocurrencies for clients under federal supervision.

The application was filed on Feb. 18, and the proposed trust bank would be a wholly owned subsidiary of Morgan Stanley. The unit would focus on holding digital assets on behalf of customers and supporting related activities such as buying, selling, swapping and transferring tokens. It may also facilitate staking services on a fiduciary basis. 

A national trust bank is not a typical deposit-taking commercial bank. Instead, it is purpose-built around custody and fiduciary/administration services, a regulatory form that many market participants view as well-suited for digital assets, where secure safekeeping, operational controls and compliant settlement processes are central concerns.

Why it Matters for Morgan Stanley’s Crypto Business

For Morgan Stanley, a federal trust charter is a strategic infrastructure step. Custody is the backbone for broader crypto offerings: trading, staking, lending-like features and wealth-management distribution often hinge on having a bank-grade custodian that institutions and advisors are comfortable using.

Operating through a nationally chartered trust bank reduces reliance on third-party custodians and tightens governance around client assets. This is an important differentiator as large investors scrutinize operational risk in crypto markets.

The move underscores Morgan Stanley’s accelerating push into digital assets. The company is already expanding its crypto-related initiatives and building out the organizational depth needed to scale these products. Moreover, regulated custody will likely unlock new fee pools—custody, servicing and ancillary activity—while positioning the company to compete directly with incumbents already benefiting from the institutionalization of crypto market structure.

FinTech Taking Similar Steps as Morgan Stanley

In December 2025, Circle Internet Group’s CRCL First National Digital Currency Bank, N.A. received conditional OCC approval for a crypto custody bank charter. Once fully approved, the federally regulated national trust bank would operate under OCC oversight and oversee management of the USDC Reserve for Circle’s U.S. issuer, while also supporting institutional-grade digital-asset custody capabilities.

Coinbase Global Inc. COIN has applied for a charter with the OCC, which will help grow its crypto custody business. If approved, the company can offer custody and related banking services nationwide. Coinbase can also pursue payments and related services, fueling higher institutional adoption. Greg Tusar, vice president, Institutional Product, stated, “Coinbase isn't pursuing the license to become a bank. It has no intention of doing so.”

Morgan Stanley’s Price Performance & Zacks Rank

Shares of MS have rallied 12.1% in the past six months, outperforming the industry’s growth of 3.1%.
 

Currently, Morgan Stanley carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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