Morgan Stanley anticipates that U.S. banks will eventually hold bitcoin on their balance sheets, though significant regulatory challenges remain, according to Amy Oldenburg, head of digital asset strategy. Speaking at the Bitcoin Conference in Las Vegas, Oldenburg highlighted the bank's ongoing efforts to expand its digital asset business in response to growing client demand. She noted that while the regulatory environment has become more supportive, hurdles such as Federal Reserve policies and Basel rules must be addressed before banks like Morgan Stanley can integrate bitcoin into their balance sheets. Morgan Stanley has already made strides in the digital asset space, launching MSBT, a bitcoin-backed exchange-traded product, which attracted over $100 million in its first six days. This product, notable for its self-directed client inflows, underscores the strong demand for regulated bitcoin exposure. Oldenburg also mentioned the bank's pursuit of an OCC digital trust charter to enable direct crypto custody and spot trading. Despite these advancements, Oldenburg emphasized the need for enhanced advisor education to bridge the gap between client demand and advisory offerings.