Morgan Stanley, Galaxy Digital Launch Crypto Lending Referral Program for Wealth Clients
Morgan Stanley Wealth Management has launched a new referral arrangement with Galaxy Digital designed to help eligible clients more efficiently integrate digital assets into traditional investment portfolios.
The program allows qualified Morgan Stanley clients to lend cryptocurrencies, including Bitcoin, Ether and Solana, to Galaxy and receive shares of exchange-traded products with exposure to spot digital assets, including but not limited to the Morgan Stanley Bitcoin Trust (MSBT), offered by Morgan Stanley Investment Management.
The firms said the arrangement is intended to streamline what has traditionally been a lengthy and operationally complex process. Onboarding timelines for these transactions can currently exceed four weeks, but the new referral capability could reduce onboarding times by as much as 75% in some cases.
“Morgan Stanley has been investing in the DeFi space for some time, and we are proud to support a referral capability with Galaxy to provide Wealth Management clients with an institutionalized pathway that helps integrate digital assets into their portfolio,” said Alison Nest, head of investment solutions products at Morgan Stanley Wealth Management.
Under Galaxy’s model, clients lend specified digital assets to Galaxy, which then coordinates an in-kind creation with an authorized participant when it determines the loan can be settled in exchange-traded product shares. The shares are subsequently delivered into the client’s account.
The arrangement also lowers the barrier to entry for qualified investors. Galaxy will reduce its minimum lending transaction size for Morgan Stanley-referred clients from $25 million to $5 million.
“Streamlined onboarding and lowered transaction minimums make it easier for clients to integrate digital assets alongside traditional investments, supporting a holistic approach to wealth management,” said Zane Glauber, global head of distribution at Galaxy.
Morgan Stanley Wealth Management said it will provide educational resources on digital assets and facilitate referrals to Galaxy as part of the offering.