Key Highlights
- Brian Armstrong confirms Coinbase will custody Morgan Stanley’s Bitcoin Trust, boosting institutional crypto trust.
- Morgan Stanley’s MSBT marks its first Bitcoin ETP, reflecting rising Wall Street demand for regulated crypto access.
- Coinbase strengthens its dominance, securing major bank partnerships as institutional Bitcoin adoption accelerates.
Coinbase has hit a major achievement by becoming the custodian for Morgan Stanley’s new Bitcoin Trust (MSBT). CEO Brian Armstrong shared the news on X, highlighting how traditional finance is increasingly moving into digital assets.
The trust, launched by Morgan Stanley Investment Management (MSIM) on April 8, is a regulated exchange-traded product (ETP) that tracks bitcoin’s price using the CoinDesk Bitcoin Benchmark 4PM NY Settlement Rate.
MSIM is now the first U.S. bank-affiliated asset manager to offer a cryptocurrency ETP, reflecting growing demand from clients for access to digital assets.
Brian Armstrong had earlier highlighted Coinbase’s role in institutional crypto, sharing, “Coinbase custodies 80%+ of the U.S. BTC and ETH ETF assets, and saw a peak of $31B inflows from ETFs in 2025.”
Morgan Stanley’s decision to work with Coinbase reflects its strategy to use a trusted crypto platform while keeping strong regulatory and security controls. Armstrong added, “Institutional adoption continues, regardless of short term price effects,” showing how banks are increasingly turning to digital asset solutions.
Institutional crypto adoption expands
MSBT adds to Morgan Stanley’s lineup of exchange-traded products, which already manage $12 billion across 19 ETFs, including Calvert, Parametric, and Eaton Vance funds.
Ben Huneke, Head of Morgan Stanley Investment Management, said, “We are proud to introduce MSBT to the marketplace… leveraging Morgan Stanley’s collective strength… can add value for existing clients and unlock new investor opportunities.”
Ally Wallace, Global Head of ETF Strategy, noted that ETPs provide transparent, regulated ways for investors to access new asset classes and diversify safely. Coinbase and BNY will handle custody for MSBT, with BNY also managing administration, accounting, and cash operations.
Coinbase is expanding quickly in the institutional space. By the end of 2025, it held $376 billion in assets on its platform, accounting for more than 12% of the global crypto market. The OCC also gave conditional approval for Coinbase National Trust Company, bringing the firm closer to full federal oversight of its institutional custody services.
A strategic partnership with long-term implications
Morgan Stanley’s partnership with Coinbase shows a wider trend in finance. Amy Oldenburg, Head of Digital Asset Strategy, said, “MSBT reflects our firmwide approach to thoughtfully building digital asset capabilities grounded in traditional governance.”
The deal also highlights how traditional banks increasingly rely on crypto-focused firms for secure custody. With spot Bitcoin ETF trading now over $1.8 trillion, digital assets are becoming a regular part of diversified investment portfolios.
This step further integrates traditional finance with digital assets and shows how custodians like Coinbase help bridge the gap between banks and blockchain.
Also Read: The 620,000 Bitcoin Blunder: Bithumb Turns to Courts to Claw Back Remaining BTC
