SKN | Morgan Stanley Maps the Institutional Shift Toward Tokenized Assets and 24/7 Financial Markets

Key Takeaways:

• Morgan Stanley expects tokenized real-world assets to reach approximately $2.3 trillion by 2030, compared with an estimated $30 billion to $40 billion currently.
• The bank identifies collateral management, tokenized money market funds, government securities and digital payments as important areas of institutional adoption.
• Morgan Stanley is emphasizing infrastructure development rather than selecting blockchain winners, preparing for a financial environment increasingly defined by real-time data, continuous trading and digital settlement.

Morgan Stanley is positioning the development of digital assets as a structural transformation of financial markets rather than simply an extension of cryptocurrency trading. In its October 29, 2026, *Thoughts on the Market* podcast, Global Digital Asset Strategist Felix Stratmann and Head of Digital Asset Strategy Amy Oldenburg discussed how tokenization, institutional infrastructure and evolving regulation could reshape the movement of capital. Their assessment highlights a significant shift in the bank’s strategic focus: preparing financial institutions for a more integrated system in which traditional securities and digital financial infrastructure increasingly operate together.

Tokenization Moves Beyond Cryptocurrency

Morgan Stanley estimates that tokenized real-world assets currently represent approximately $30 billion to $40 billion, compared with almost no meaningful market just a few years ago. Stratmann said the bank expects this market to expand to approximately $2.3 trillion by 2030, reflecting growing institutional interest in representing traditional financial assets on blockchain networks.

Oldenburg emphasized that the broader opportunity extends beyond Bitcoin and other cryptocurrencies. The bank sees potential in tokenized equities and government securities, particularly through the introduction of programmability into financial products. This could create operational efficiencies and new product structures in areas where traditional processes involve significant administrative friction.

Collateral Management Becomes a Central Institutional Opportunity

One of Morgan Stanley’s most significant identified use cases is collateral management. Traditional financial infrastructure can make transferring collateral across institutions and jurisdictions time-consuming, particularly when transactions require continuous availability.

Tokenized money market funds and government securities could potentially move more efficiently between institutions and serve as collateral. This becomes increasingly relevant as financial markets move toward 24-hour trading and settlement. Morgan Stanley also highlighted growing stablecoin payment activity, which Stratmann estimated was approaching $100 billion per month.

Morgan Stanley Prioritizes Infrastructure Over Blockchain Selection

Oldenburg said Morgan Stanley is not currently choosing specific blockchain winners or standards. Instead, the institution is focused on developing the core infrastructure required for real-time data, continuous trading and future financial products.

She also emphasized that regulatory uncertainty has not eliminated the opportunity to modernize. While legislation such as the proposed CLARITY Act remains an important consideration, Stratmann noted that tokenized securities, funds, payment infrastructure and institutional settlement can continue developing under existing legal frameworks.

Morgan Stanley’s research also indicates that institutional adoption is already progressing: approximately one-quarter of global financial companies by number, representing around 60% by market capitalization, have announced, piloted or launched digital asset initiatives.

The Transition Will Reshape Institutional Banking Operations

Morgan Stanley expects traditional and digital financial systems to coexist in a hybrid environment for several years. Oldenburg stressed that adoption requires more than blockchain technology: institutions must redesign workflows, upgrade internal policies and address governance and workforce requirements.

For international investors and families managing significant cross-border assets, the implications extend to custody, collateral mobility, liquidity management and the integration of traditional and tokenized holdings. Morgan Stanley’s message is that digital assets are increasingly becoming an infrastructure question for established financial institutions. The institutions that successfully modernize their operating systems while maintaining regulatory compliance, cybersecurity and asset protections will be better positioned to participate in this evolving financial architecture.

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