Wall Street giant Morgan Stanley has launched a “digital asset lab” to test crypto products, according to reports.
Bloomberg on Tuesday reported that the bank was using the lab to test products like stablecoins, tokenized assets and decentralized finance apps.
Morgan Stanley is one of many banks delving deeper into the crypto world. The traditional finance titan became the first bank to debut a bitcoin exchange-traded fund in April.
The fund, the Morgan Stanley Bitcoin Trust, now manages over $871 million in assets, according to its website.
Citing an interview with Megan Brewer, who is head of firmwide market innovation and labs at the bank, Bloomberg reported that the lab gives Morgan Stanley a “secure, compliant and segregated environment to be able to test and explore some of these new areas of digital assets.”
The report added that the labs team is working to test products like tokenized deposits, central-bank digital currencies and tokenized money market funds.
Morgan Stanley has a number of so-called labs to test out new products, the report continued.
Morgan Stanley has been making big crypto moves for years now. Back in 2021, it started offering wealthy clients exposure to bitcoin via funds such as those by Galaxy Digital.
Last year, the banks CEO and Chairman, Ted Pick, said that the bank was working with regulators to see how they could offer crypto products safely.
Back in April, the banks head of digital assets, Amy Oldenburg said client education — not product design — is the central challenge facing Bitcoin adoption.
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Top banks worldwide are working on offering products that use Bitcoins underlying technology. These products include everything from tokenized equities and stablecoins to bitcoin custody and trading platforms.