Morgan Stanley Executives Say Traditional Banking Hours Are Coming to an End

Financial markets are shifting toward round-the-clock trading and real-time settlement, according to Morgan Stanley executives, who say tokenization is driving the industry away from traditional business-hour banking.

Moving Beyond Batch Processing

Speaking during a recent panel on digital assets, Morgan Stanley’s global head of banks and diversified finance research said the shift toward tokenized assets goes far beyond cryptocurrency, describing it instead as a rebuild of financial infrastructure for an economy that never sleeps. She said the traditional practice of processing transactions in batches during set hours is becoming outdated as banks, exchanges and custodians invest in systems supporting continuous asset movement.

Expanding Digital Asset Offerings

Morgan Stanley has broadened its digital asset lineup significantly over the past year, adding spot trading for bitcoin, ether and solana through its E*TRADE platform, alongside expanded access to cryptocurrency ETFs for wealth clients. The firm also launched its first spot bitcoin ETF earlier this year, followed recently by spot ether and solana ETFs.

Tokenization Seen as Gateway for Mainstream Investors

A Morgan Stanley Wealth Management strategist said tokenized money market funds and stocks have grown quickly this year and may introduce many everyday investors to blockchain technology before they ever purchase crypto directly. He noted that many investors who once viewed bitcoin as their only crypto exposure are now exploring broader digital asset options as more products become available.

Multi-Currency Products Seen as Next Step

Another executive pointed to rising interest in multi-currency digital asset ETFs as the next phase of product development, though leadership acknowledged this broader transition will likely unfold over several years rather than months.