Morgan Stanley reportedly launches digital asset lab for crypto products

Bloomberg reported that Morgan Stanley has launched a digital asset lab to test crypto products. The lab is testing stablecoins, tokenized assets and decentralized finance apps, according to Bloomberg. Bloomberg also reported that the lab's team is testing tokenized deposits, central-bank digital currencies and tokenized money market funds. Bloomberg quoted Megan Brewer, Morgan Stanley's head of firmwide market innovation and labs, describing the lab as a secure, compliant and segregated environment for testing digital assets. Morgan Stanley became the first bank to debut a bitcoin exchange-traded fund in April. The Morgan Stanley Bitcoin Trust manages over $871 million in assets, according to its website. In 2021, Morgan Stanley began offering wealthy clients bitcoin exposure through funds. Last year, CEO and Chairman Ted Pick said the bank was working with regulators to explore how to offer crypto products safely. In April, digital assets head Amy Oldenburg said client education was the central challenge to Bitcoin adoption, rather than product design.