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Why Morgan Stanley’s CFO sees tokenization as the next big step for its multitrillion-dollar wealth business

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Why Morgan Stanley's CFO sees tokenization as the next big step for its multitrillion-dollar wealth business

Morgan Stanley is signaling a growing focus on tokenization and blockchain-based infrastructure, framing “onchain” finance as a potential next step in how it serves wealth clients.

Speaking during the bank’s first-quarter earnings call, executives described a future where assets and liabilities move more freely across digital rails. “How do you think of a tokenized world? How do you think of an onchain world where you can move assets quickly, the same way you’d be able to move those liabilities quickly?” Sharon Yeshaya, the firm’s chief financial officer, said, pointing to a shift beyond traditional account-based systems.

The comments carry added weight given the scale of Morgan Stanley’s wealth business, which oversees trillions in client assets and serves as a central engine of the firm’s growth. Any change to how assets are moved, lent or advised on within that system could have wide-reaching implications across the financial industry.

The comments place tokenization within the bank’s core wealth strategy, not as a standalone crypto initiative. Executives tied the concept to client advisory, lending and cash management, suggesting that digital infrastructure could reshape how portfolios are managed and how clients access liquidity.

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“We would be there to offer different types of products on the asset side,” Yeshaya said, adding that the firm is also considering “what kinds of things might exist on the lending side for onchain… and how do you also move and think about all of those digital assets.”

The framing reflects a broader industry shift, in which large banks are increasingly exploring blockchain technology to modernize financial plumbing rather than disrupt it outright.

At Morgan Stanley, that approach remains measured but is quickly progressing.

The firm recently launched a digital asset pilot through a partnership with Zero Hash, allowing select E*Trade clients to buy and sell major cryptocurrencies. While limited in scope, the initiative gives the bank a controlled entry point into digital assets as it evaluates client demand.

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Morgan Stanley has also expanded its leadership in the space, appointing Amy Oldenburg as head of digital assets earlier this year. The firm has taken steps to offer bitcoin exposure through its own spot bitcoin ETF, MSBT, which is trading 8% higher since its launch a week ago.

Still, digital assets remain a small part of the business. Instead, the emphasis appears to be on long-term infrastructure. “There’s a lot of creative space in terms of the advice-driven model,” Yeshaya said.

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Crypto World

Tax Day Relief Skips Bitcoin Users Buried in Capital Gains Paperwork

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Tax Day Relief Skips Bitcoin Users Buried in Capital Gains Paperwork

US Treasury Secretary Scott Bessent marked Tax Day by praising the Working Families Tax Cuts, saying tens of millions of Americans now keep more of their paychecks. But for Bitcoin (BTC) users, the tax code tells a very different story.

Cato Institute research fellow Nicholas Anthony published a new analysis arguing that capital gains rules have made it nearly impossible to spend Bitcoin as money in the United States.

Bitcoin Spending Triggers a Paperwork Avalanche

Anthony explained that every purchase made with BTC requires users to record the acquisition date, the spending date, the original cost, and the gain or loss.

All of those details must land on IRS Form 8949 and Schedule D of Form 1040.

The result, he wrote, is staggering. A person who buys a cup of coffee every day with bitcoin could face more than 100 pages of filings by year-end. Form 8949 alone could run to roughly 70 pages for daily transactions.

“Capital gains tax rates are structured to incentivize long-term holding. This policy distorts the market by incentivizing buying and selling solely to mitigate tax losses. However, it’s especially distortionary in the context of money, given that long-term holding policies discourage what is generally considered ‘currency use,’” wrote Nicholas Anthony,

Congress Has Options, Anthony Says

Anthony outlined several potential fixes. The simplest would eliminate capital gains taxes entirely. A narrower approach would exempt cryptocurrency and foreign currency from capital gains treatment.

He also referenced the Virtual Currency Tax Fairness Act, which would create a de minimis exemption for gains under $200, though he argued the threshold should rise to match average household spending of $80,000.

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Meanwhile, payment infrastructure is moving faster than the tax code. Square recently launched no-fee Bitcoin payments at merchant terminals, and self-hosted wallets from Bull Bitcoin, Zeus, and Trezor have simplified consumer spending.

The post Tax Day Relief Skips Bitcoin Users Buried in Capital Gains Paperwork appeared first on BeInCrypto.

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Bitnomial Launches US-Regulated Injective Futures with ETF Implications

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Coinbase, Kraken, Derivatives, Bitcoin Futures, Injective

Chicago-based crypto exchange Bitnomial has launched monthly futures contracts tied to Injective, marking the first US-regulated derivatives product for the Web3 financial ecosystem’s native token.

According to Wednesday’s announcement shared with Cointelegraph, the contracts settle in INJ (INJ) with monthly expiries, allowing traders to gain price exposure without holding the underlying asset, and can be margined in crypto or US dollars through Bitnomial’s clearinghouse.

The listing also starts a six-month track record that could support a spot exchange-traded fund under US Securities and Exchange Commission (SEC) listing rules. In July, Canary Capital filed for a staked INJ ETF, with Cboe BZX Exchange submitting a corresponding rule change to the SEC.

Institutional clients can access the futures immediately, with retail trading expected to follow via Bitnomial’s Botanical platform in the coming weeks. The company said it also plans to add perpetual futures and options tied to INJ.

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Coinbase, Kraken, Derivatives, Bitcoin Futures, Injective
Source: Injective

Injective runs on a Layer 1 blockchain built for financial applications, with an onchain order book and cross-chain connectivity to networks including Ethereum (ETH) and Solana (SOL).

Bitnomial is a derivatives exchange that operates a trading venue, clearinghouse and brokerage for crypto futures and options that is regulated by the Commodity Futures Trading Commission (CFTC). In January, the exchange launched monthly futures contracts tied to Aptos (APT) marking the first US-regulated derivatives product for the alt coin. 

Related: Injective community passes governance vote to slash INJ token supply

Exchanges push to expand US crypto futures offerings

US-regulated crypto futures remain largely concentrated in major assets like Bitcoin (BTC) and Ether (ETH), with Bitnomial among the few venues listing derivatives tied to altcoins. Expanding those offerings has required navigating a shifting and often uncertain regulatory environment.

In August 2024, Bitnomial moved to list XRP (XRP) futures through CFTC self-certification, but the SEC challenged the plan, arguing the contracts could require securities exchange registration. 

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After filing a lawsuit in October 2025, Bitnomial dropped the case in March and later that month launched regulated XRP futures for US users, citing evolving SEC policy.

Other platforms have taken a more gradual approach. Coinbase launched CFTC-regulated futures tied to Bitcoin and Ether for institutional clients in June 2023, later expanding access with retail-sized contracts in May 2025 and introducing 24/7 trading to provide round-the-clock market access for US participants.

Also in May, Kraken acquired futures platform NinjaTrader for about $1.5 billion, gaining a CFTC-registered Futures Commission Merchant and expanding its reach into regulated derivatives markets.

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