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Morgan Stanley expects to support tokenized equities on its alternative trading system by the first quarter of 2027, according to Amy Oldenburg, the bank's head of digital asset strategy. Speaking with The Block at Token2049, Oldenburg pushed back the timeline from the second half of 2026 she had indicated in March, saying the team is actively building infrastructure but needs tokenized products to actually exist first. "We need product in order to be able to support them within the ATS," she said. "And the client demand really isn't there because the product doesn't exist."
Why it matters
Oldenburg framed the delay as a sequencing problem rather than a waning of interest. She flagged DTCC's tokenization service launch at the end of this month as a significant milestone that could kickstart market activity, and pointed to the GENIUS Act taking effect in January as another development the firm is watching closely. Permissibility from the Fed remains a hurdle, she added, with parts of the Clarity legislation still underdefined for traditional financial organizations.
The initiative fits Morgan Stanley's stated strategy of raising, allocating, and managing capital onchain while helping clients navigate a hybrid world. The firm already routes direct equities, derivatives, and swaps through its ATS, which matches orders outside public exchanges like the Nasdaq, and treats tokenization as an extension of that same vehicle-agnostic model.
Market impact
The buildout runs deeper than the ATS alone. Morgan Stanley is developing proprietary wallet infrastructure, abstracted away from users, to hold tokenized assets, and recently established a Digital Asset Lab to stress-test blockchain and crypto-native technologies before anything reaches production. The bank also received conditional OCC approval earlier this year for a digital trust that can custody or stake digital assets for clients.
Oldenburg identified private shares, structured notes, custom products, and private fund access as near-term tokenization opportunities, where blockchain can cut paperwork and administrative burden.
Frequently asked questions
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When will Morgan Stanley support tokenized equities?
The bank targets Q1 2027 for supporting tokenized equities on its alternative trading system, according to digital asset strategy head Amy Oldenburg. That is later than the second half of 2026 timeline she indicated in March.
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Why did Morgan Stanley push back its tokenization timeline?
Oldenburg said client demand is not there because tokenized equity products do not yet exist, and the firm needs product in place before it can support them within its ATS. Regulatory elements, including Fed permissibility and undefined parts of the Clarity framework, are also factors.
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What catalysts could speed up tokenized equities adoption?
Oldenburg pointed to DTCC's tokenization service launch at the end of this month as a significant milestone, and to the GENIUS Act coming into effect in January, as developments that could encourage more market activity.
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What is Morgan Stanley building for tokenized assets?
The firm is developing proprietary wallet infrastructure that abstracts custody away from users, runs a Digital Asset Lab to test blockchain technologies before production, and received conditional OCC approval for a digital trust to custody or stake digital assets.
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How big does Morgan Stanley expect the tokenized RWA market to get?
Asked about forecasts of $3 trillion to $10 trillion for the tokenized real-world asset market, Oldenburg said, "We'll definitely be within that range without question." She sees private shares, structured notes, and private fund access as near-term opportunities.
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