Morgan Stanley Picks Coinbase, BNY as Custodians for Planned Bitcoin ETF

Core Viewpoint - Morgan Stanley is advancing its cryptocurrency strategy by proposing a Bitcoin Trust and intends to use The Bank of New York Mellon and Coinbase Custody Trust Company for custody services [1][3]. Group 1: Bitcoin Trust and Custody - Morgan Stanley has amended its S-1 registration to include Bitcoin custody arrangements for its proposed Bitcoin Trust [1]. - The custody setup mirrors existing Bitcoin ETFs, such as BlackRock's iShares Bitcoin Trust, which also utilizes BNY as a cash custodian [2]. - The firm initially filed for the spot Bitcoin ETF in January, along with Ethereum and Solana ETFs, but had not disclosed custodial details at that time [3]. Group 2: Future Plans and Strategy - The bank's digital assets strategy head, Amy Oldenburg, indicated that Morgan Stanley plans to offer a comprehensive suite of services including Bitcoin custody, trading, yield, and lending [4]. - Oldenburg emphasized the importance of building in-house capabilities rather than relying solely on external technology providers to meet client expectations [5]. - When asked about the cryptocurrency holdings of its clients, Oldenburg noted that it is a significant amount, although she does not expect clients to transfer all their Bitcoin to the bank's custody solutions [5].