One of the world's largest financial institutions, Morgan Stanley is taking another step toward integrating digital assets with traditional finance. Through a new collaboration with Galaxy Digital, qualified clients can lend their crypto holdings instead of selling them and receive shares in spot crypto ETFs. The model enables investors to gain exposure to traditional investment vehicles without liquidating their digital assets.
Under the program, investors can lend assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) to Galaxy Digital and receive shares in investment products including the Morgan Stanley Bitcoin Trust (MSBT). According to the firms, the structure reduces the time required to transition from crypto holdings to ETF exposure by approximately 75%, creating a more efficient investment process.
Institutional Adoption Continues to Expand
A key feature of the partnership is the reduction of the minimum lending threshold. Galaxy Digital lowered the minimum requirement for Morgan Stanley clients from $25 million to $5 million, making the service accessible to a broader range of institutional investors. Morgan Stanley is also exploring spot crypto trading through E-Trade and stablecoin reserve strategies, while Galaxy Digital reported $505 million in adjusted gross profit from its trading, lending, and asset management divisions in 2025. The partnership is viewed as another milestone in the growing integration of digital assets into institutional portfolios.
