- Morgan Stanley moved its tokenized equity trading target from H2 2026 to Q1 2027 as it continues building ATS infrastructure.
- Regulatory uncertainty and limited access to tokenized equity products are restraining institutional demand, according to Amy Oldenburg.
- Morgan Stanley is exploring tokenized private shares, structured notes and fund access while developing proprietary digital asset wallets.
Morgan Stanley now expects to support tokenized equities on its alternative trading system in the first quarter of 2027, pushing back its earlier second-half 2026 target. Amy Oldenburg, the bank’s head of digital asset strategy, told The Block that infrastructure development continues, while limited product availability has kept institutional client demand low.
Infrastructure Work Pushes Timeline Into 2027
Oldenburg said Morgan Stanley is building the infrastructure needed to support tokenized equities through its alternative trading system (ATS). She described Q1 2027 as more realistic than the timeline she outlined in March.
The bank needs tokenized equity products to exist before its ATS can support them. However, Oldenburg said institutional clients have limited opportunities to access these products currently.
She also pointed to regulatory uncertainty as another issue for traditional financial institutions. Oldenburg cited questions about Federal Reserve permissibility and said some elements of the proposed CLARITY Act framework remain insufficiently defined.
DTCC Launch and GENIUS Act Among Key Developments
Morgan Stanley is monitoring the Depository Trust and Clearing Corporation’s planned tokenization service launch. Oldenburg identified the initiative as a development that could encourage further market activity.
The bank is also watching the GENIUS Act, which Oldenburg said was scheduled to take effect in January. These developments form part of the wider infrastructure and regulatory landscape affecting institutional participation.
Morgan Stanley’s ATS matches orders outside public exchanges such as Nasdaq. The bank already offers equities, derivatives and swaps through this model, and Oldenburg described tokenization as an extension of its existing services.
Morgan Stanley Expands Its Digital Asset Work
Beyond tokenized equities, Morgan Stanley is developing proprietary wallet infrastructure for clients holding tokenized assets. The firm has also established a Digital Asset Lab to test blockchain and crypto-native technologies before production.
Oldenburg identified private shares, structured notes, custom products and private fund access as potential near-term tokenization opportunities. She also discussed the possibility of using tokenized assets as collateral.
The bank received conditional approval from the Office of the Comptroller of the Currency earlier this year to establish a digital trust for custody or staking. Oldenburg also expects the tokenized real-world asset market to reach between $3 trillion and $10 trillion by 2030.
