Morgan Stanley Wealth Management has agreed to a referral arrangement with Galaxy Digital. Eligible clients can lend cryptocurrencies against shares in exchange-traded cryptocurrency products, including the Morgan Stanley Bitcoin Trust (MSBT).
The structure allows investors to transfer existing cryptocurrency holdings into regulated brokerage products without selling them. It also lowers the entry threshold and shortens the onboarding process, expanding access to qualified wealth clients who already own digital assets.
How does in-kind referral work?
The customer lends specific assets such as Bitcoin (BTC), Ether (ETH), or Solana (SOL) to Galaxy. Once Galaxy confirms its ability to settle the loan in ETP shares, it coordinates the in-kind origination with an approved participant.
The shares then land in the client’s chosen account. Because cryptocurrencies are loaned rather than sold, the process avoids the taxable disposition and execution risks of converting to cash.
MSBT, which was launched in April as Cheapest US Bitcoin ETFsproves the product range. The bank had already cleared it Wealth advisors to recommend Bitcoin funds for clients.
The lower minimum meets a bear market
Galaxy will reduce the minimum lending amount for Morgan Stanley referrals from $25 million to $5 million. The preparation period, which can currently exceed four weeks, may be shortened by up to 75% in some cases.
The timing is notable. Bitcoin is trading near $60,749 after falling about 4% in one day Ether is at around $1,588 and Solana are near $65, both of which have fallen sharply over the past month.
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Bridging traditional finance and DeFi
The deal is based on Galaxy new york license And the launch of her previous works European Cryptocurrency ETFs With DWS.
“This referral arrangement represents an important step forward in bridging traditional finance and decentralized finance, providing more investors with streamlined opportunities to diversify.” He reads Excerpt from the ad quoted by Allison Nest, head of investment solutions products at Morgan Stanley Wealth Management.
At the same time, Galaxy has framed its appeal around convenience for customers and balancing the two worlds.
“The simplified onboarding process and low transaction minimums make it easier for clients to integrate digital assets alongside traditional investments, supporting a holistic approach to wealth management,” the press release added, citing Zen Glauber, Global Head of Distribution at Galaxy.
The arrangement keeps the client’s assets and fees within Morgan Stanley’s ecosystem while Galaxy delivers its lending and origination business.
Whether lower minimums will translate into consistent ETP inflows during a softer market is a question the coming weeks may answer.
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