Morgan Stanley and Galaxy Launch Crypto Lending Pathway Into Bitcoin ETPs

Morgan Stanley Wealth Management has launched a referral arrangement with Galaxy Digital for eligible clients seeking to lend crypto and receive spot crypto ETP shares. The setup is designed to make digital assets easier to integrate into traditional portfolios.

• Key Takeaways:
• • Morgan Stanley partnered with Galaxy to let eligible clients lend BTC, ETH, and SOL.
• • Galaxy cut the minimum loan size from $25M to $5M, expanding access to qualified investors.
• • Morgan Stanley says onboarding times could fall by up to 75% through the new process.

Galaxy Opens $5M Crypto Lending Program to Morgan Stanley Wealth Clients

Morgan Stanley Wealth Management is expanding its digital asset offering through a new referral arrangement with Galaxy Digital, giving eligible clients a path to lend crypto and receive exchange-traded product (ETP) shares tied to spot crypto exposure.

Under the model, clients may lend digital assets such as bitcoin, ether or solana to Galaxy. If Galaxy determines the loan can be settled in ETP shares, it will coordinate an in-kind creation with an authorized participant. The resulting shares will then be delivered to an account selected by the client.

The ETPs may include products with exposure to spot crypto, including the Morgan Stanley Bitcoin Trust (MSBT), offered by Morgan Stanley Investment Management.

The arrangement is aimed at clients who want to move from direct crypto holdings into traditional investment products more efficiently. Morgan Stanley said the structure can help with portfolio integration, including margin and lending capabilities, while lowering onboarding costs and delays.

Current onboarding timelines for similar transactions can exceed four weeks. Through the new referral process, Morgan Stanley said onboarding could be reduced by as much as 75% in some cases.

Alison Nest, head of investment solutions products at Morgan Stanley Wealth Management, said the firm has been investing in decentralized finance and sees the arrangement as a way to give clients a more institutional pathway into digital assets. Nest said:

This referral arrangement represents a significant step forward in bridging traditional finance and decentralized finance, providing more investors with streamlined opportunities to diversify.

Galaxy Lowers Entry Requirement to $5 Million for Lenders

Galaxy is also lowering its lending transaction minimum for Morgan Stanley-referred clients from $25 million to $5 million. That change expands access to qualified clients who meet eligibility requirements. Morgan Stanley Wealth Management will provide educational resources about digital assets and facilitate referrals to Galaxy. Galaxy will handle the lending and ETP settlement process.

Zane Glauber, Galaxy’s global head of distribution, said the model offers a secure and efficient route for clients to access spot crypto ETPs. He remarked:

Streamlined onboarding and lowered transaction minimums make it easier for clients to integrate digital assets alongside traditional investments, supporting a holistic approach to wealth management.

The arrangement reflects a broader shift among large wealth managers. Rather than keeping crypto separate from traditional portfolios, firms are building structures that allow digital assets to sit inside familiar brokerage and advisory frameworks.

For Morgan Stanley clients, the main change is practical. Crypto exposure can be converted into regulated investment products with fewer operational hurdles, giving advisors and clients more tools to manage digital assets within a broader wealth strategy.