Morgan Stanley has made progress in developing a digital wallet designed to support tokenised real-world assets, with a launch targeted for late 2026.
The product is intended for institutional investors and high-net-worth individuals and is expected to provide custody services alongside limited transaction capabilities for assets represented on blockchain networks.
The planned wallet reflects a broader shift among large financial institutions towards tokenisation, which involves converting ownership of traditional assets into digital tokens. These tokens can be settled more quickly than conventional instruments and can be divided into smaller units, potentially widening investor access to typically illiquid markets.
Morgan Stanley’s approach places less emphasis on direct exposure to volatile cryptocurrencies and more on regulated digital representations of assets such as private equity, real estate and collectables. The firm already offers exposure to Bitcoin exchange-traded funds and has invested in research around distributed ledger technology, which highlights the new initiative.
Morgan Stanley’s tokenisation strategy
The US bank is entering a competitive landscape that includes JPMorgan, Goldman Sachs, BNY and Fidelity, all of which have launched or tested tokenisation or digital custody platforms. While some rivals have focused on internal settlement systems or wholesale infrastructure, Morgan Stanley is designing its wallet to integrate directly with its wealth management services, suggesting a more client-facing deployment.
Industry forecasts cited by Boston Consulting Group estimate that tokenised assets could represent a market worth up to USD 16 trillion by the end of the decade, driven by efficiency gains and new liquidity channels. Morgan Stanley appears to be positioning itself to participate in this growth by extending its existing wealth and workplace financial services into digital asset custody.
Security and compliance are expected to be important to the wallet’s design, with anticipated features including offline key storage, advanced cryptographic controls, and integration with anti-money laundering and know-your-customer systems. The rollout is likely to be phased, initially offering custody and portfolio visibility before expanding into trading or collateral use, depending on regulatory developments.
