Galaxy Digital, Morgan Stanley Slash Crypto Lending Minimum to $5M for ETF Shares
GLXY•Galaxy Digital and Morgan Stanley Wealth Management launched a referral deal enabling clients to lend Bitcoin, Ether or Solana in exchange for shares in the Morgan Stanley Bitcoin Trust, lowering minimums from $25m to $5m. Onboarding time may shrink by up to 75%, preserving digital assets without taxable sales.
1. Referral Arrangement Structure
The referral arrangement lets Morgan Stanley Wealth Management clients lend Bitcoin, Ether or Solana to Galaxy Digital in exchange for spot crypto ETP shares. Galaxy confirms asset settlement and coordinates in-kind ETF share creation with an authorized participant before delivering shares to client accounts.
2. Lending Terms and Benefits
The deal lowers lending minimums from $25 million to $5 million for referred clients and cuts onboarding time by up to 75%. Because crypto is lent rather than sold, clients avoid taxable disposals and execution risk of converting digital assets into cash.
3. Strategic Impact on Galaxy Digital
The partnership expands Galaxy’s lending book and fee income by tapping Morgan Stanley’s wealth client base, bolstering Galaxy’s position in regulated crypto markets. It also highlights Galaxy’s capacity to support large-scale in-kind creations of spot crypto ETPs, potentially attracting more institutional flows.
