Morgan Stanley Eyes DeFi Vaults as Next Step in Crypto Expansion

Morgan Stanley's digital assets head, Amy Oldenburg, believes there is a 'very reasonable path' for decentralized finance (DeFi) vaults to become part of the bank's future.

Oldenburg told Bloomberg that DeFi vaults are still in their 'nascent' phase and cannot be risked on the wider platform. She emphasized the need for thorough testing before integration, which will take place in Morgan Stanley's Digital Asset Lab.

The lab, located within the bank's existing network of innovation labs, is a secure and compliant environment where the team can test and explore new areas of digital assets.

Morgan Stanley recently launched its Bitcoin ETF (MSBT) in April, marking the first spot Bitcoin ETF from a major U.S. bank. The financial institution also rolled out cryptocurrency trading on its E*Trade platform earlier this year.