Morgan Stanley Taps Blockchain for Tokenized Deposits and Stablecoins

Morgan Stanley has established a Digital Asset Lab to test blockchain-based financial applications, including tokenized deposits, stablecoins, central bank digital currencies (CBDCs), tokenized funds, and DeFi vaults.

The lab operates within Morgan Stanley's broader network of technology and innovation facilities in New York, Glasgow, and Bangalore. Megan Brewer, who leads market innovation and labs at Morgan Stanley, said the facilities allow employees to test technologies before they are considered for broader use.

The bank is examining several types of blockchain-based financial products rather than focusing only on cryptocurrencies. Tokenized deposits can represent bank liabilities on blockchain networks, while tokenized funds can use distributed ledgers to record ownership and facilitate transfers.