Morgan Stanley is now letting clients borrow up to 50% of the value of their Bitcoin ETP holdings.
The move is part of a broader push by Morgan Stanley Wealth Management to weave digital assets into the fabric of traditional finance. Through a referral arrangement with Galaxy Digital announced on June 5, the firm is enabling eligible clients to lend cryptocurrencies, including Bitcoin, Ether, and Solana, directly to Galaxy and receive shares in spot crypto exchange-traded products in return.
How the structure actually works
Morgan Stanley’s solution has clients send crypto to Galaxy Digital and get back ETP shares, including shares of Morgan Stanley’s own Bitcoin Trust, known as MSBT. Those shares land directly in the client’s brokerage account.
Once the crypto is wrapped in an ETP structure, it behaves like any other security. That means margin borrowing, securities lending, and consolidated reporting all become available.
