Morgan Stanley Expects Tokenized Equities Support in Q1 2027

Morgan Stanley now expects to start supporting tokenized equities on its alternative trading system in the first quarter of 2027, later than the second half 2026 timeline it indicated in March.

Amy Oldenburg, head of digital asset strategy, said the bank is actively building the needed infrastructure but needs products to exist before client demand can form. She described the new window as more realistic.

DTCC Launch and GENIUS Act Seen as Key Milestones

Oldenburg pointed to the upcoming DTCC tokenization service launch at the end of this month as a significant milestone. She also cited the GENIUS Act taking effect in January as a development the firm is watching closely.

She said permissibility from the Federal Reserve remains a factor after the Clarity Act failed to advance, adding that traditional organizations still need clearer rules.

Securitization of Everything Drives Bank Strategy

Supporting tokenized equities through its ATS fits the bank’s strategy of raising, allocating and managing capital onchain. Morgan Stanley already offers direct equities, derivatives and swaps through the same model and views tokenization as an extension.

The firm is also developing proprietary wallet infrastructure and recently set up a Digital Asset Lab to test blockchain technologies. It received conditional OCC approval earlier this year for a digital trust to custody or stake digital assets.

Oldenburg said the tokenized real world asset market will land between $3 trillion and $10 trillion by 2030, and noted strong FOMO among institutional players.