Morgan Stanley delays tokenized stock trading to 2027

What happened

Morgan Stanley has pushed its expected timeline for supporting tokenized equities on its alternative trading system to the first quarter of 2027, moving beyond its earlier second-half 2026 target as it develops the infrastructure needed for blockchain-based securities trading. Amy Oldenburg, the bank's head of digital asset strategy, confirmed the updated schedule during a TOKEN2049 appearance in Singapore, noting it is more realistic than the late 2026 timetable she outlined in March. The revised timeline applies to support for tokenized securities on the bank's existing Trajectory Cross alternative trading system, not a separate cryptocurrency exchange. The proposed service was initially expected to support selected U.S. stocks and ETFs alongside their conventional equivalents when it launches.

Oldenburg said limited product availability and low institutional demand are the primary factors holding back the launch. She noted the bank cannot offer trading support for tokenized equities until suitable financial products are widely available, stating, "We need product in order to be able to support them within the ATS." The bank is continuing to build required infrastructure, including proprietary digital wallet systems and blockchain application testing through its Digital Asset Lab, while monitoring activity among custodians, trading venues and regulators. While other blockchain platforms have already expanded tokenized equity offerings, xStocks currently provides access to more than 1,100 tokenized equities, Morgan Stanley is building a regulated system integrated with its existing ATS.

Why it matters

The delay highlights the gap between Wall Street's long-term tokenized asset ambitions and current market readiness. While Morgan Stanley predicts the tokenized real-world asset market will reach between $3 trillion and $10 trillion by 2030, the current market size sits at approximately $39.19 billion as of October 12, per RWA.xyz data. The bank's cautious approach also reflects broader industry reliance on foundational infrastructure like the Depository Trust & Clearing Corporation's planned October 2026 tokenization service launch, which will provide standardized blockchain-based representations for eligible securities within existing custody frameworks.

Oldenburg expressed confidence in the long-term tokenized asset market, stating the bank will "definitely be within that range without question" of the $3 trillion to $10 trillion 2030 forecast. She identified private shares, structured notes and investment funds as high-potential tokenization segments, as blockchain could streamline complex administrative processes for asset ownership and transfers. Financial institutions are also increasingly exploring tokenized securities as collateral for lending and trading activities, which could drive future institutional adoption.

What is still unclear

• Morgan Stanley has not shared a confirmed launch date for its tokenized equities support, a list of eligible stocks or ETFs, or details on any additional project costs associated with the delayed timeline.

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