Morgan Stanley Prepares to Add Bitcoin Borrowing and Interest Products

Key Takeaways

• Morgan Stanley plans to add Bitcoin lending and yield products.
• Rollout follows spot trading and in-house custody buildout.
• Services will be integrated directly into brokerage accounts.
• Bank keeps Bitcoin allocation guidance at 2% – 4%.
• Spot crypto ETFs are also part of the expansion plan.

The update came on February 25, 2026, when Amy Oldenburg, the bank’s Head of Digital Asset Strategy, said the move is “absolutely” part of the long-term roadmap.

Speaking at the Bitcoin for Corporations conference in Las Vegas, Oldenburg described the services as being in the early stages of exploration. Still, she made clear that lending against Bitcoin and generating yield on holdings are viewed internally as natural extensions of the bank’s broader crypto ambitions.

A Multi-Phase Crypto Buildout

The bank’s strategy follows a structured, multi-phase rollout designed to gradually integrate digital assets into its traditional brokerage ecosystem.

The first phase, already underway in early 2026, focuses on direct spot trading for major cryptocurrencies including Bitcoin, Ethereum, and Solana. These services are being rolled out to millions of retail clients via the E*TRADE platform through a partnership with crypto infrastructure provider ZeroHash.

The second phase, expected by mid-2026, centers on building native custody infrastructure and a proprietary exchange stack. The goal is to achieve institutional-grade reliability while reducing reliance on third-party providers. By developing in-house custody and trading systems, Morgan Stanley aims to tighten operational control and strengthen regulatory alignment.

Only after establishing custody does the third phase come into focus – integrating Bitcoin lending and yield products directly into brokerage accounts. This would allow clients to borrow against their BTC holdings or earn interest on them without moving assets off-platform.

Why Bitcoin Lending Now?

Oldenburg pointed to growing momentum in on-chain credit markets and decentralized finance lending as an unexpected catalyst. The acceleration of DeFi-based borrowing and yield strategies has reportedly intensified internal discussions about how traditional financial institutions can participate without compromising compliance standards.

With nearly $9 trillion in client assets under management, Morgan Stanley sees a significant opportunity to bring crypto holdings that currently sit on external platforms back under its supervision. The strategy reflects a broader effort by large banks to capture revenue streams that have historically flowed to crypto-native firms.

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Portfolio Positioning and ETFs

Despite its expanding ambitions, the bank continues to advise moderation. Current guidance suggests clients limit Bitcoin exposure to between 2% and 4% of total portfolio allocations, reinforcing the view of BTC as a satellite position rather than a core holding.

Beyond direct trading and prospective lending, Morgan Stanley has also moved into regulated investment vehicles. In early January 2026, the firm filed for spot Bitcoin, Ethereum, and Solana exchange-traded funds, aiming to provide compliant, familiar structures for digital asset exposure.

The Road Ahead

If executed as outlined, the addition of lending and yield services would mark a major shift for a Wall Street institution of Morgan Stanley’s size. By combining trading, custody, ETF products, and eventually credit and yield solutions under one umbrella, the bank is positioning itself to compete directly with both crypto-native platforms and other traditional financial giants entering the space.

While timelines remain fluid and the lending products are still in development, the direction is clear: Bitcoin is moving deeper into mainstream brokerage infrastructure, and Morgan Stanley intends to be fully wired into that evolution.

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