Morgan Stanley Enables Crypto Lending for ETP Shares via Galaxy Digital
Wealth management clients can lend Bitcoin, Ethereum, or Solana to Galaxy Digital in exchange for spot crypto ETP shares.
Morgan Stanley announced on June 5 that eligible wealth management clients can now lend Bitcoin, Ethereum, or Solana to Galaxy Digital. In return, clients receive shares of spot crypto exchange-traded products (ETPs).
Under the arrangement, Galaxy Digital coordinates an in-kind creation with an authorized participant and then delivers the ETP shares directly into the client's chosen account. The move streamlines the process for clients looking to generate yield from their crypto holdings while gaining exposure to regulated ETPs.
The deal marks a significant step for institutional crypto adoption, as it introduces lending collateral as a new use case for digital assets. Onboarding timelines and specific terms for eligible clients have not been fully disclosed.