Morgan Stanley Secures OCC's Conditional Green Light for Trust Charter

Morgan Stanley MS has moved closer to building a regulated digital-asset infrastructure after receiving preliminary conditional approval from the Office of the Comptroller of the Currency (“OCC”) to establish Morgan Stanley Digital Trust, National Association.The proposed national trust bank, headquartered in Purchase, NY, is expected to support Morgan Stanley’s digital-asset custody ambitions under federal oversight. Morgan Stanley Digital Trust is expected to provide custody of certain digital assets and conduct related activities, including the purchase, sale, swap and transfer of digital assets to support client investment activities. It will also facilitate staking of digital assets on a fiduciary basis and act as a collateral administrator for digital-asset lending offered by an affiliate.The approval is conditional, meaning the trust bank cannot begin operations until it satisfies the OCC's pre-opening requirements and receives final authorization.As part of the approval, the digital-asset trust must maintain at least $50 million in Tier 1 capital during its first three years of operation, with at least half held as eligible liquid assets. It must maintain additional eligible liquid assets sufficient to cover 180 days of operating expenses. During these three years, the trust is required to assess its capital and liquidity on a quarterly basis and engage an independent external auditor to conduct annual audits.The trust must obtain the OCC's non-objection before appointing senior executive officers or directors during its first three years. It must also notify the OCC at least 60 days before making any significant changes to its business plan or operations.Here’s Why This Matters for Morgan StanleyThe charter approval is strategically significant for Morgan Stanley as it strengthens the company’s push into regulated digital-asset services. For a wealth-management-focused company like Morgan Stanley, client trust, regulatory oversight and operational reliability are critical. Bringing custody capabilities closer to its platform could improve control, reduce external dependency and enhance the client experience as demand for digital-asset exposure grows.The trust charter provides MS with a clearer regulatory pathway to support crypto-related services such as custody, transfers, trading support and fiduciary staking. It also positions the company to capture fee opportunities across custody, servicing and related activities, while competing more effectively with established players benefiting from the institutionalization of crypto market structure.The move complements Morgan Stanley’s broader cryptocurrency initiatives, including its partnership with crypto infrastructure provider Zerohash to introduce crypto trading capabilities for E*Trade clients. Establishing a federally regulated trust bank would give MS greater control over asset custody, settlement and operational risk management, making the initiative more than just a crypto expansion.It reflects the company’s effort to build the regulated infrastructure needed to serve investors who increasingly prefer digital-asset exposure through traditional financial institutions.Crypto custody and related digital-asset services are unlikely to materially change Morgan Stanley’s near-term earnings profile. However, if finalized, the charter would enhance the company’s long-term growth opportunities and help it gain a competitive advantage against traditional financial institutions and crypto-focused custodians.FinTech Taking Similar Steps as Morgan StanleyIn April 2026, Coinbase Global Inc. COIN secured conditional approval from the OCC for a national trust company charter, which will help grow its crypto custody business. Once fully approved, the national trust company charter will help COIN to offer custody and related banking services nationwide. 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 CRCL's U.S. issuer, while also supporting institutional-grade digital-asset custody capabilities.Morgan Stanley’s Price Performance & Zacks RankMS shares have rallied 15% in the past six months, outperforming the industry’s growth of 2.8%. Image Source: Zacks Investment Research Currently, Morgan Stanley carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. 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