The latest confirmed developments

On Friday, June 5, 2026, Morgan Stanley Wealth Management and Galaxy Digital announced a new program allowing eligible Morgan Stanley clients to lend Bitcoin, Ethereum, or Solana to Galaxy in exchange for shares of spot crypto ETPs. Source

The arrangement includes the Morgan Stanley Bitcoin Trust (MSBT), which launched on NYSE Arca on April 8, 2026, and is among the eligible ETPs for these in-kind exchanges. Galaxy Digital coordinates the in-kind creation of these ETP shares with an Authorized Participant once the loan is settled. As part of the program, Galaxy reduced its minimum lending transaction size for referred Morgan Stanley clients from $25 million to $5 million.

Why this mattered beyond the headline

This move illustrates a broader shift where traditional banks are using registered ETP wrappers to turn native crypto into bankable collateral, aligning with margin, custody, and reporting workflows in regulated markets. The implications include lower entry barriers for Morgan Stanley-referred clients and a faster on-ramp for in-kind crypto-to-ETP creation, potentially boosting liquidity in these collateral markets. Assetify editorial judgment: this path hints at a structural shift toward securitized crypto collateral in regulated markets, with regulators potentially shaping the pace of adoption. For researchers and practitioners tracking crypto-adoption milestones, CryptoSlate has highlighted this ongoing trend as part of the larger evolution in institutional crypto finance.