Report: Morgan Stanley Launches Digital Asset Lab for Crypto Tests

According to reports, Wall Street titan Morgan Stanley has set up a "digital asset lab" for testing crypto products.

Bloomberg reported Tuesday that the bank is employing the lab to test stablecoins, tokenized assets and decentralized finance applications.

Many banks are exploring the crypto space, and Morgan Stanley is among them. In April, the traditional finance giant became the first bank to launch a bitcoin exchange-traded fund.

The Morgan Stanley Bitcoin Trust, the fund in question, now holds over $871 million in assets, its website states.

Bloomberg cited an interview with Megan Brewer, the bank's head of firmwide market innovation and labs, who said the lab offers a "secure, compliant and segregated environment to be able to test and explore some of these new areas of digital assets."

The report also noted that the lab team is testing tokenized deposits, central-bank digital currencies and tokenized money market funds.

The report further stated that Morgan Stanley operates several such labs for testing new products.

The bank has been active in crypto for years. In 2021, it began providing wealthy clients with bitcoin exposure through funds including those from Galaxy Digital.

Last year, CEO and Chairman Ted Pick stated that the bank was collaborating with regulators to determine how to safely offer crypto products.

In April, the bank's digital assets head, Amy Oldenburg, said the main obstacle to Bitcoin adoption is client education, not product design.

Major banks globally are developing products that leverage Bitcoin's underlying technology. They range from tokenized equities and stablecoins to bitcoin custody and trading platforms.