Morgan Stanley Delays Tokenized Equities Launch to Q1 2027
- Morgan Stanley plans to support tokenized equities on its alternative trading system (ATS) by the first quarter of 2027.
- This timeline is a revision from an earlier target set for the second half of 2026 due to ongoing infrastructure development.
- Digital asset strategy head Amy Oldenburg anticipates the market for tokenized real-world assets could reach $3 trillion to $10 trillion by 2030.
- The bank is also developing wallet infrastructure and a Digital Asset Lab to test blockchain technologies.
- Oldenburg highlighted private equities and bespoke financial products as promising areas for tokenization, which may reduce administrative costs.
The delay in launching tokenized equities reflects Morgan Stanley’s need for a viable product before supporting it on their ATS, as there is currently no client demand for non-existent products. The upcoming launch of the Depository Trust & Clearing Corporation’s tokenization service is viewed as a critical milestone in this evolving market.
With expectations of a $3 trillion to $10 trillion market for tokenized assets by the end of the decade, Morgan Stanley’s strategic initiatives aim to position it at the forefront of this emerging sector.