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Morgan Stanley filed S-1 registration statements with the SEC, for spot ETFs tracking Bitcoin and Solana.
This step signals deepening institutional involvement in cryptocurrencies. Simultaneously, on January 7, 2026, World Liberty Financial, a venture connected to the Trump family, announced its subsidiary WLTC Holdings applied for a national trust bank charter from the OCC (Trump-Linked World Liberty Financial Applies for U.S. Bank Charter).
The proposed World Liberty Trust Company focuses on issuing and custodizing USD1, a USD-pegged stablecoin, under the GENIUS Act framework.
Key Takeaways
- Morgan Stanley files for Bitcoin and Solana ETFs, targeting institutional inflows after $1.16B recent Bitcoin ETF buys.
- Solana ETF adds staking rewards, competing in low-fee market against BlackRock and VanEck.
- Trump-linked World Liberty seeks trust bank charter for USD1 stablecoin issuance under GENIUS Act.
- GENIUS Act enforces 100% reserves, bans yields, and enables nonbank stablecoin operations with federal oversight.
- Moves signal crypto maturation, blending traditional finance with blockchain for efficient asset access.
Morgan Stanley's ETF Initiatives
The filings cover the Morgan Stanley Bitcoin Trust and Morgan Stanley Solana Trust. Both are passive funds mirroring asset prices after fees. The Solana ETF includes staking, where holdings participate in network validation to earn rewards, a feature seen in prior approvals like VanEck's.
Morgan Stanley, with $1.5 trillion in assets under management, has offered indirect crypto access since 2021 but now pursues direct ETF sponsorship.
Recent market data shows spot Bitcoin ETFs attracting $1.16 billion in net inflows over two days before the filings, dominated by BlackRock.
Bitcoin trades above $94,000, while Solana's market cap exceeds $80 billion.
Approval could take months, subject to SEC scrutiny.
This move competes with established issuers, potentially driving down fees from the 0.25% average for Bitcoin ETFs. It expands investor options in decentralized finance, where Solana supports high-throughput applications.
World Liberty Financial's Charter Application
World Liberty Financial, launched in October 2024 by Donald Trump Jr. and associates, operates a DeFi protocol. Its USD1 stablecoin, debuted in March 2025, holds $3.3 billion in circulation. The trust bank charter would enable seamless USD-USD1 conversions without fees and custody for other stablecoins.
Tied to real estate via the Witkoff family, the venture emphasizes AML compliance and reserve standards. If approved, WLTC would join entities like Coinbase in federal oversight, bolstering USD1's integration into payments.
GENIUS Act Overview
Signed July 18, 2025, by President Trump, the Guiding and Establishing National Innovation for U.S. Stablecoins Act creates a federal stablecoin regime. It classifies payment stablecoins as fixed-value tokens for transactions, requiring 100% reserves in high-quality assets like Treasuries.
Issuers must operate as bank subsidiaries, OCC-supervised nonbanks, or state entities with federal nods.
The act bans interest or yield payments to holders, mandates audits, disclosures, and capital requirements. It restricts activities to stablecoin functions, promoting stability while allowing nonbanks to compete in payments.
Implementation involves FDIC and Treasury guidelines, including denial appeals. Foreign issuers need compliance for U.S. markets, aiming for global consistency amid past stablecoin failures like 2022 events.
Broader Market Context
Total stablecoin supply surpasses $200 billion, facilitating efficient cross-border transfers.
Institutional pushes like Morgan Stanley's could propel Bitcoin to $100,000 and grow Solana's ecosystem. GENIUS Act compliance reduces risks, fostering mainstream adoption in finance.
However, volatility and cybersecurity threats persist.
Conclusion
These filings and applications under GENIUS Act advance institutional crypto strategies, offering compliant pathways for Bitcoin, Solana, and stablecoins in global finance.
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FAQs:
1. What are Morgan Stanley's proposed ETFs?
Filed January 6, 2026, they track Bitcoin and Solana spot prices, with Solana including staking for network rewards.
2. How does World Liberty tie to stablecoins?
Its WLTC subsidiary applied January 7, 2026, for an OCC charter to issue and custody USD1, compliant with GENIUS Act.
3. What key rules does GENIUS Act impose?
Requires full reserves in liquid assets, prohibits yields, mandates audits, and limits issuers to supervised entities.
4. Why does this matter for markets?
Expands retail crypto access, enhances stablecoin legitimacy, potentially driving adoption amid $200B+ supply.
5. What are the ongoing risks?
Include price volatility, regulatory shifts, and security issues despite new frameworks.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
