Morgan Stanley expects to support tokenized equities in Q1 2027, digital asset strategy head says

Morgan Stanley has adjusted its timeline for supporting tokenized equities on its alternative trading system (ATS) to the first quarter of 2027. Amy Oldenburg, the firm’s head of digital asset strategy, cited a current lack of available tokenized products and insufficient institutional client demand as primary reasons for the delay. The bank is actively developing proprietary wallet infrastructure and testing blockchain technologies through its newly established Digital Asset Lab to prepare for future onchain operations. Morgan Stanley views tokenization as a natural extension of its existing business model, aiming to facilitate capital management across both traditional and hybrid formats. The firm is closely monitoring the upcoming DTCC tokenization service launch and the implementation of the GENIUS Act as critical market catalysts. Despite the timeline shift, the bank remains optimistic about the long-term growth of the sector, projecting the RWA market could reach between $3 trillion and $10 trillion. This strategic pivot highlights the ongoing institutional challenge of balancing technological readiness with the current scarcity of viable, regulated tokenized equity products.