The executive said Bitcoin on bank balance sheets is "not totally out of the question," but added that Basel capital rules and coordination among multiple regulators remain major obstacles.
Morgan Stanley’s head of digital assets said banks holding Bitcoin on their balance sheets is possible, though not yet straightforward. The comment indicates that direct bank exposure to Bitcoin may become more feasible if regulatory conditions evolve. The executive identified Basel capital rules and alignment across multiple regulators as the main barriers, highlighting that capital treatment and supervisory coordination are central issues for banks considering crypto exposure.