Is the Fed the ultimate villain? Morgan Stanley: Three "barriers" to Bitcoin being included in bank assets need to be overcome

Bitcoin officially enters the banking system, moving from imagination to reality. Morgan Stanley’s (Morgan Stanley) Digital Asset Strategy Head Amy Oldenburg expects that Bitcoin will inevitably appear on the balance sheets of major U.S. banks in the future, but there are still several hurdles to overcome for now.
Amy Oldenburg revealed at the Bitcoin Conference held in Las Vegas recently that, as customer demand continues to rise, this Wall Street investment bank is actively paving the way for expanding its digital asset footprint. She said:

We have been deeply involved in the digital asset field for many years, and now the regulatory environment is more supportive than ever for us to showcase our capabilities.

The Federal Reserve and International Regulations Are Key Obstacles
Amy Oldenburg also mentioned that U.S. banks may eventually include Bitcoin on their balance sheets, but for banks of Morgan Stanley’s scale to start holding Bitcoin, several major hurdles must be overcome first, including the Federal Reserve’s stance, Basel Accords (global banking regulation standards), and the need to gain consensus and approval from multiple global regulatory agencies.
In fact, it’s not just Morgan Stanley that is optimistic about banks entering the crypto space. Wall Street giants like BNY Mellon CEO Robin Vince stated in March this year that large financial institutions will serve as bridges between traditional finance and digital assets, leading the next wave of cryptocurrency adoption; but he also emphasized that regulatory clarity remains the primary prerequisite before banks decide to “fully commit.”
Morgan Stanley MSBT Gains Over $100 Million in 6 Days of Trading
Despite regulations still being under development, Morgan Stanley has not slowed down. Amy Oldenburg said that the bank recently launched a Bitcoin spot ETF — “MSBT,” which is not only a major breakthrough for Morgan Stanley but also the first time a U.S. chartered bank has issued such a product.
What’s even more impressive is that MSBT attracted over $100 million in the first six trading days, with all funds coming from “active investments” by clients, and Morgan Stanley’s own financial advisors have not even started recommending this product to clients.
Advisors Lag Behind Client Demand, Internal Training Accelerating
Amy Oldenburg pointed out that there is a clear gap between the products financial advisors offer and the actual needs of clients. Although Morgan Stanley recommends that clients allocate 2% to 4% of their assets to Bitcoin, the promotion pace is obviously lagging, mainly due to insufficient education and training.
She revealed that up to 80% of the ETP investment positions on Morgan Stanley’s wealth management platform are self-directed by clients. To address this, the bank has launched internal training programs to help financial advisors improve their skills.
The market’s demand for “compliant Bitcoin investment channels” is an undeniable fact. For example, BlackRock’s Bitcoin spot ETF “IBIT,” which launched in January 2024, has seen its asset size surge past $61 billion, setting a record for the fastest-growing ETF in history.
Next Step: OCC Digital Trust License to Enable Direct Custody and Spot Trading
Looking ahead, Amy Oldenburg said Morgan Stanley is actively applying to the U.S. Office of the Comptroller of the Currency (OCC) for a “Digital Trust Charter.”