Banks Build Out Crypto Infrastructure Amid Bear Market

Despite the bear market gloom that has been weighing on cryptocurrency prices, major banks are pressing ahead with their plans to offer crypto services. In recent weeks, several institutions have announced significant developments in their efforts to provide custody, staking, and tokenization solutions.

Morgan Stanley is one of the latest banks to take a major step forward, filing for a de novo national trust bank charter that would allow it to custody digital assets. This move comes after the bank hired Amy Oldenburg to lead its digital asset strategy and signaled plans for a proprietary digital wallet later this year.

Meanwhile, Citi is launching institutional bitcoin custody later this year, with the goal of making bitcoin fit into bank-grade custody, reporting, and tax workflows. The bank has also discussed enabling cross-margining so clients can manage crypto alongside securities and cash under one structure.