Bitcoin. The bank manages $9.3 trillion in client assets, giving it a large base from which to distribute new products.
Oldenburg identified a tokenized money-market fund as "definitely a path forward" for the firm's product roadmap. Such funds issue yield-bearing tokens backed by short-term government securities. Franklin Templeton pioneered that model in 2021, but BlackRock's BUIDL product has since grown to $2.3 billion and taken the lead. Fidelity's Digital Interest Token holds roughly $172 million in total value.
Morgan Stanley subsidiary Parametric manages rules-based investment strategies, including tax-loss harvesting for traditional portfolios. Oldenburg said applying a similar approach to digital assets is "something to also explore." Tax-loss harvesting lets investors sell losing positions to offset capital gains, reducing their overall tax bill.
The bank's more than 15,000 wealth advisors gained approval last year to recommend third-party spot
Bitcoin ETFs, specifically those run by Fidelity and BlackRock, to eligible clients. Morgan Stanley was the first major wirehouse to grant advisors that access. Oldenburg said the newly launched ETF will likely function as a commercial entry point, with more specialized products built around it over time.
Other initiatives are already underway. Morgan Stanley confirmed plans last year to offer crypto trading through E*TRADE, using infrastructure from Zerohash. In February, Oldenburg said the bank is also looking at
Bitcoin-based yield and lending services.
The bank's expense ratio of 0.14% on its spot Bitcoin ETF undercuts most rivals in the market. Oldenburg said the goal was to deliver the product efficiently rather than maximize fee revenue. "Now, let's see some more interesting products continue to develop around that," she said.
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