Morgan Stanley has named Coinbase Custody Trust Company as a Bitcoin custodian for its proposed Morgan Stanley Bitcoin Trust, a spot ETF that will hold Bitcoin directly for U.S. investors.
The bank will also use Bank of New York Mellon alongside Coinbase, underscoring how large institutions now rely on a mix of traditional and crypto‑native providers to safeguard digital assets.
How Morgan Stanley’s Bitcoin Trust Uses Coinbase
Morgan Stanley updated its S‑1 filing with the U.S. Securities and Exchange Commission in early March to spell out the trust’s structure. The document shows that Coinbase Custody Trust Company and BNY Mellon will serve as the fund’s bitcoin custodians, responsible for holding the underlying BTC and handling transfers tied to ETF share creations and redemptions.
The trust aims to offer spot bitcoin exposure through standard brokerage accounts, using the CoinDesk Bitcoin Benchmark at 4 p.m. New York is the main pricing reference.
Under the plan, most of the trust’s bitcoin will sit in offline cold storage, with private keys kept off the internet to reduce hacking risk. A smaller portion may move into “hot” or trading wallets when authorized participants create or redeem ETF shares in cash or in‑kind.
Coinbase will oversee the crypto custody and prime‑broker style operations, while BNY Mellon handles fund administration, transfer agency, and cash custody, including accounting and shareholder records.
Why Coinbase’s Role Matters
For Coinbase, being named as custodian for the Morgan Stanley Bitcoin Trust adds another flagship mandate to its work with issuers like BlackRock. The exchange’s custody arm already underpins a large share of U.S. spot bitcoin ETFs, and its selection by a major bank reinforces its position as a default crypto vault for institutions.
It also signals that big banks still prefer to lean on specialized crypto custodians for private‑key management, even when they partner with long‑established firms like BNY Mellon.
Morgan Stanley, meanwhile, gains a custody setup that mirrors what regulators have already seen in other approved bitcoin funds. Using Coinbase for keys and BNY for fund plumbing allows the trust to fit inside familiar operational templates while still tapping crypto‑native infrastructure.
The bank has positioned custody as a core part of its long‑term digital asset strategy and has been expanding crypto-related exposure options for wealth and brokerage clients.
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