Morning Minute: The Banks Are Coming for Crypto Custody
Morgan Stanley, Citigroup, and Barclays—three of the world’s largest banks—recently made significant moves into crypto custody. Morgan Stanley applied for a national trust bank charter to launch Morgan Stanley Digital Trust, aiming to offer integrated services including custody, trading, swaps, staking, and stablecoin issuance under federal regulation. Citigroup announced plans to launch institutional Bitcoin custody this year, allowing clients to hold Bitcoin in the same accounts as their traditional assets, enabling seamless integration and collateralization of crypto with other investments. Barclays is exploring blockchain payment platforms for stablecoins and tokenized deposits, issuing RFIs to tech vendors. These steps indicate a shift beyond past speculation, with major financial institutions actively establishing in-house crypto services. The ability to custody, issue, and manage digital assets puts them in direct competition with established crypto custodians like Coinbase and BitGo. The surge in OCC charter applications underscores the momentum: large banks’ adoption signals increased maturity and legitimacy of the crypto industry, pointing to a bullish outlook for its continued integration into traditional finance.
