Morgan Stanley Has Future Plans for Bitcoin Trading, Lending, and Custody
Summary
Morgan Stanley plans to enhance its digital asset offerings, including Bitcoin trading, lending, and custody solutions. The firm aims to launch a fully integrated platform, allowing clients to manage their crypto assets securely under its oversight.
Key Insights
What does Bitcoin custody mean in Morgan Stanley's plans?
Bitcoin custody refers to securely holding clients' Bitcoin using regulated third-party custodians or Morgan Stanley's proprietary solutions, where assets are segregated from the custodian's proprietary property and other clients' assets to protect against insolvency risks.
How does recent SEC guidance affect Morgan Stanley's ability to custody crypto assets?
Updated SEC rules clarify that broker-dealers like Morgan Stanley can custody non-security crypto like Bitcoin without full 'possession or control' under Rule 15c3-3, allowing control through agreements rather than physical possession, while withdrawing prior strict guidance.
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