TL;DR:
- Morgan Stanley and Galaxy Digital launched a referral agreement allowing high-net-worth clients to lend crypto to Galaxy in exchange for ETP shares.
- The agreement covers bitcoin, ethereum and solana, and can reduce in-kind onboarding times by up to 75% by eliminating the need to liquidate positions.
- Galaxy reduced the minimum transaction amount for clients referred by Morgan Stanley from $25 million to $5 million, broadening product accessibility.
Morgan Stanley and Galaxy Digital announced a referral agreement that allows eligible high-net-worth clients to lend crypto assets to Galaxy in exchange for shares in exchange-traded products (ETPs) linked to cryptocurrencies. The agreement covers bitcoin, ethereum and solana, and incorporates access to the Morgan Stanley Bitcoin Trust, launched on April 8 of this year.
The structure aims to reduce the limitations in the process of onboarding crypto into ETPs. According to the announcement, the mechanism can shorten in-kind onboarding times by up to 75%, by allowing clients to convert their crypto exposure into regulated investment products without needing to liquidate their positions into cash first.
Morgan Stanley: From Direct Holdings to Regulated Products
The agreement makes clear that major wealth managers are integrating crypto assets into their platforms without treating them as an isolated trading product. Many high-net-worth investors already hold cryptocurrencies directly, but moving those assets into regulated products directly involves addressing custody, liquidity, taxation and timing. The partnership with Galaxy Digital gives Morgan Stanley a fundamental tool to serve those clients without requiring them to fully exit their positions.
The initiative fits seamlessly into the firm’s strategy. In recent months, Morgan Stanley launched a bitcoin ETF, began offering spot cryptocurrency trading through an integration with E-Trade and introduced the Stablecoin Reserves Portfolio, a money market fund. The referral agreement adds another layer that connects crypto holdings with wealth management channels.
Alison Nest, head of investment solutions products at the firm, stated that the firm has been investing in the DeFi sector for some time and that the agreement with Galaxy represents “a key step in the integration of digital assets into client portfolios.”
Galaxy, for its part, reduced the minimum transaction amount for clients referred by Morgan Stanley from $25 million to $5 million. The firm recorded $505 million in adjusted gross profit in 2025, with its institutional financial services as the core of its business.
