Morgan Stanley Builds Crypto Lab To Test Digital Assets

Wall Street investment bank Morgan Stanley (NYSE: $MS) has built an internal cryptocurrency lab where it is testing digital asset technologies.

Morgan Stanley has set up a "Digital Asset Lab" to test technologies such as stablecoins, tokenization, and decentralized finance applications.

The move comes as the Wall Street firm explores how blockchain systems can be used across its business.

A growing number of banks and financial institutions on Wall Street are pushing into crypto and the technology underpinning digital assets.

One of the biggest areas is tokenization, which involves creating blockchain-based versions of stocks, bonds and cash.

Morgan Stanley says that its crypto lab has so far focused on areas such as tokenization, electronic trading, cybersecurity and machine learning.

The bank operates one of the largest wealth management services in the U.S. and has said that its clients increasingly want exposure to Bitcoin (CRYPTO: $BTC) and other digital assets.

The new crypto lab is being overseen by Morgan Stanley's innovation team and spans the bank's offices in New York, Scotland and India.

Morgan Stanley and other Wall Street firms are also experimenting with crypto amid a more favorable regulatory environment under U.S. President Donald Trump.

Earlier this year, Morgan Stanley launched crypto trading on its E*Trade platform that primarily facilitates trading among individual retail investors.

MS stock has risen 6% this year to trade at $193.11 U.S. per share.

Bitcoin is trading at $84,000 U.S. on Sept. 29.