Morgan Stanley is the latest Wall Street stalwart to embrace cryptocurrency. The financial group will be the first big U.S. bank to allow wealth-management clients access to bitcoin funds, CNBC first reported, citing anonymous sources. A source familiar with the matter confirmed the plan.
According to CNBC, Morgan Stanley is launching three funds that enable ownership of bitcoins. The bank currently manages more than $4 trillion in client assets, but the option to buy bitcoins will first be offered to just the richer echelon, who have at least $2 million held by the firm and an “aggressive risk tolerance” for the volatile asset. Bitcoin purchases will be limited to 2.5% of investors’ net worth, sources told the outlet.
Morgan Stanley declined to comment.
Despite the restrictions, it’s a major victory for cryptocurrency, which has been propelled into the mainstream over the past few months. As the bitcoin’s value has skyrocketed beyond $50,000, fueled by endorsements from financial influencers Jack Dorsey and Elon Musk, big-money institutions have begun to welcome digital assets, including PayPal, Mastercard, and the historic Bank of New York Mellon.