Amy Oldenburg, head of digital asset strategy at Morgan Stanley, has declared that U.S. banks are on an inevitable path toward holding Bitcoin on their balance sheets, outlining the key regulatory approvals required. Speaking at a Bitcoin conference in Las Vegas, Oldenburg highlighted that explicit permission from the Federal Reserve and compliance with Basel Committee on Banking Supervision standards are essential gatekeepers. She noted a growing favorability in the regulatory environment for digital assets, which lays the groundwork for institutional adoption.
Oldenburg emphasized that banks must develop robust risk management frameworks to meet Basel rules, which currently classify Bitcoin as a high-risk asset requiring higher capital reserves. The Federal Reserve's evolving stance—signaling a more open dialogue with financial institutions—is a critical factor in enabling large-scale Bitcoin custody.
Morgan Stanley has already taken a concrete step by launching MSBT, the first Bitcoin-backed exchange-traded product from a U.S.-chartered bank. The product attracted over $100 million within its first six days, entirely from self-directed investors, demonstrating strong retail demand for regulated Bitcoin exposure. Oldenburg's comments suggest the firm is actively exploring further digital asset services in response to client interest.
She also stressed the need for global regulatory coordination, as banks like Morgan Stanley operate across multiple jurisdictions. Coordinated rules from authorities in the U.S., Europe, and Asia would simplify compliance and reduce legal risks. While no specific timeline was given, Oldenburg indicated that progress is accelerating, with many experts predicting major banks will hold Bitcoin within two to five years.
In a separate advisory, Morgan Stanley is recommending clients allocate 2% to 4% of their portfolios to Bitcoin, signaling cautious institutional confidence. Oldenburg noted that adviser adoption remains slow due to limited awareness, but the regulatory roadmap is becoming clearer.
