Morgan Stanley (NYSE: MS) has set up a Digital Asset Lab to test crypto-native technologies such as stablecoins, tokenization, and decentralized finance (DeFi) applications, as per a Bloomber
Morgan Stanley (NYSE: MS) has set up a Digital Asset Lab to test crypto-native technologies such as stablecoins, tokenization, and decentralized finance (DeFi) applications, as per a Bloomberg report.
Morgan Stanley, which oversees more than $10 trillion in client assets, is one of Wall Street's largest banks.
Megan Brewer, who leads market innovation and labs at the Wall Street bank, described the Digital Asset Lab as part of the bank's existing network of innovation labs.
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These labs give Morgan Stanley employees dedicated facilities to test new technologies without risking the bank's core systems. It simply means these technologies are first tested before they interact with the bank's systems, Brewer said.
She added that these labs run up to 270 projects annually, have campuses across cities including New York (U.S.), Glasgow (U.K.), and Bangalore (India), and work closely with specialized groups. That includes the bank's digital-asset team, headed by Amy Oldenburg.
"The digital-asset lab will give us a secure, compliant and segregated environment to be able to test and explore some of these new areas of digital assets," Oldenburg said.
Stablecoins, DeFi vaults, central bank digital currencies (CBDCs), tokenized deposits and money market funds are among the blockchain-native technologies the lab will test.
Stablecoins and CBDCs are different kinds of digital dollars. Tokenization is the process of using blockchain technology to turn real-world assets (RWAs) like stocks, funds, etc., into tradable digital tokens.
A vault is a pool in which investors deposit virtual assets like stablecoins or other tokens. It then allocates the assets across a range of decentralized markets using blockchain-based software.
Oldenburg said it's reasonable to see vaults as belonging to the future, but since it's a "nascent" technology, it's best to test it first instead of putting the system at risk.
