- Morgan Stanley Wealth Management has partnered with Galaxy Digital to offer a new referral capability that enables eligible clients to convert their existing cryptocurrency holdings, such as Bitcoin and Ether, into shares in spot cryptocurrency ETPs, including its Bitcoin Trust, through an efficient in-kind creation process.
- This partnership will lower the barrier to entry by reducing the minimum transaction amount from $25 million to $5 million.
- It will also reduce processing time by up to 75%, allowing digital assets to be added to regular brokerage accounts more seamlessly.
On June 5, Morgan Stanley Wealth Management, a leading… The American multinational investment bank and financial services company announced the launch of an in-kind referral partnership with Galaxy Digital.
This agreement is expected to provide a way for eligible customers to use in-kind creation of cryptocurrency exchange-traded products (ETPs).
Under this setup, customers will be able to convert the cryptocurrency they already own into shares of exchange-traded spot cryptocurrencies more easily than before.
This announcement is a major development as traditional finance connects with the digital asset sector. It was created based on Morgan Stanley’s growing presence in the digital assets sector, including the launch of its own Bitcoin Trust, called Morgan Stanley Bitcoin Trust (MSBT), earlier in 2026.
How Morgan Stanley-Galaxy Referral Works
This new partnership will allow Morgan Stanley Wealth Management clients to lend their digital assets, such as Bitcoin, Ether or Solana, to Galaxy Digital. In return, these clients will receive shares in exchange-traded cryptocurrency products, including Morgan Stanley’s MSBT fund, which tracks the price of bitcoin.
There are several key benefits to this partnership. Sometimes, traditional operations can take more than 4 weeks. This referral system can shorten this time by up to 75% in some cases. Second, lower barriers to entry.
Galaxy has reduced the minimum transaction size for referred customers from $25 million to $5 million. This makes the service accessible to more qualified investors.
Another key benefit of this partnership is better portfolio integration. Shares of exchange-traded products can fit into existing brokerage accounts, and they support features such as margin trading and lending.
Morgan Stanley provides educational materials and handles referrals only when requested by clients without any solicitation. Galaxy manages the actual transactions, customer onboarding process, and deal execution. The two companies are not affiliated with, and Morgan Stanley does not receive any payment from these referrals.
Zen Glauber, President of Global Distribution at Galaxy, said in a statement press release “We are excited to support referrals from Morgan Stanley Wealth Management to provide an efficient and secure path to access to spot exchange-traded cryptocurrency products. The simplified setup process and low transaction minimums make it easy for clients to integrate digital assets alongside traditional investments, supporting a comprehensive approach to wealth management.”
Recent progress in encrypted ETPs
In July 2025, the SEC approved the in-kind creation and affirmative redemption Bitcoin and products traded on the stock exchange. This overtook the previous system that only allowed cash transactions. This change improves liquidity, narrows the spread between buying and selling, and offers tax advantages because it avoids forced sales of assets.
Morgan Stanley itself launched MSBT in April 2026. This made the company the first asset manager affiliated with a US bank to offer a cryptocurrency trading product on an exchange. Other companies, such as Invesco with its Bitcoin and Ethereum ETFs that partnered with Galaxy, have also expanded their digital asset offerings.
“Morgan Stanley has been investing in the DeFi space for some time, and we are proud to support the referral capability with Galaxy to provide wealth management clients with an institutional path that helps integrate digital assets into their portfolio,” said Alison Nist, Head of Investment Solutions Products, Morgan Stanley Wealth Management. “This referral arrangement represents an important step forward in bridging traditional finance and DeFi, providing more investors with streamlined opportunities to diversify.”
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