Morgan Stanley (MS 1.71%) just became the first bank in the U.S. to allow clients to essentially invest in and own Bitcoin, CNBC reported today, citing internal memos at the bank.
Morgan Stanley plans to allow wealthy clients to invest in three funds that essentially give them ownership of Bitcoin.
The crypto investment management company Galaxy Digital Holdings (GLXY -11.65%) will provide access to two of those funds, while the third fund will be provided from a partnership between FS Investments and NYDIG, according to CNBC.
Morgan Stanley currently has nearly $4 trillion in client assets, but it plans to set parameters for which clients have access to the funds.
Only wealthier clients who have at least $2 million parked at Morgan Stanley will be able to access the new funds. The bank's management team also reportedly said in its internal memo that only people with "an aggressive risk tolerance" should invest.
Investment firms that do business at the bank and want to invest need to have been clients for at least six months and have at least $5 million at the bank to qualify for access to the funds.
The bank is also limiting people who qualify to putting in 2.5% of their total net worth.
The move by the storied investment bank, which in recent years has built out its wealth and investment management business lines, reportedly came after pressure from clients looking for exposure to Bitcoin.
While Morgan Stanley may be the first U.S. bank to allow clients to essentially invest in Bitcoin, other firms have been wading further into digital currencies as well.
The recent moves demonstrate how cryptocurrencies are becoming more and more integrated into the traditional financial system.