Key Takeaways
- • Galaxy Digital selected as one of three institutional staking providers for Morgan Stanley's new Ethereum and Solana exchange-traded products, expanding its role in regulated crypto infrastructure for institutional investors.
- • Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust will stake portions of holdings through institutional validators and pass staking rewards directly to shareholders, creating yield-bearing crypto exposure within regulated investment vehicles.
- • Galaxy maintains $2.8 billion in assets staked across proof-of-stake networks as of Q2 2026, positioning the firm as a material player in institutional-grade staking infrastructure amid growing institutional adoption.
- • Partnership deepens existing Morgan Stanley-Galaxy relationship, which includes June 2026 crypto lending structures tied to Bitcoin ETPs and concurrent work with BNY Mellon on institutional staking expansion subject to regulatory approval.
- • Morgan Stanley's dual Ethereum and Solana ETP launches with staking capabilities signal strategic broadening of institutional crypto product offerings beyond spot Bitcoin exposure.
Summary
Morgan Stanley has selected Galaxy Digital as one of three staking infrastructure providers for its newly launched Ethereum and Solana exchange-traded products, announced August 18, 2026. The Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust are designed to track spot prices of Ether and Solana while distributing staking rewards earned through institutional validators to fund shareholders. This structure provides institutional and wealth management clients regulated access to staking yields—a material income stream on proof-of-stake networks that has historically remained difficult to access through traditional investment vehicles.
Galaxy brings significant institutional staking credentials to the arrangement. The company maintained $2.8 billion in assets under staking across multiple proof-of-stake networks as of the end of Q2 2026. The partnership reflects Galaxy's technical capability to manage protocol-specific requirements, as Ethereum and Solana operate distinct validator architectures and carry different operational risk profiles. Morgan Stanley's Ally Wallace highlighted Galaxy's proven experience supporting both networks, while Galaxy's engineering team noted the complexity of managing divergent client bases and risk considerations across the two protocols.
The staking agreement represents the latest expansion of an intensifying partnership between Morgan Stanley and Galaxy. In June 2026, the firms launched a crypto lending structure tied to Bitcoin ETPs, enabling wealth management clients to lend Bitcoin to Galaxy in exchange for spot crypto ETP shares. Morgan Stanley Wealth Management simultaneously introduced referral capabilities allowing eligible clients to convert held digital assets into spot cryptocurrency ETP shares. Galaxy is concurrently working with BNY Mellon on institutional staking expansion, subject to regulatory approval, further broadening its footprint across major financial institutions.
The Ethereum and Solana ETP launches reflect Morgan Stanley's strategic deepening into institutional crypto products. The firm's earlier success with spot Bitcoin exposure is being leveraged into a multi-asset institutional digital finance platform that now encompasses spot price exposure, yield distribution mechanisms, and custody-integrated conversion pathways. While specific asset levels allocated to Galaxy's staking operations under the new agreements were not disclosed, the arrangement signals institutional demand for regulated staking access at scale.
Galaxy brings significant institutional staking credentials to the arrangement. The company maintained $2.8 billion in assets under staking across multiple proof-of-stake networks as of the end of Q2 2026. The partnership reflects Galaxy's technical capability to manage protocol-specific requirements, as Ethereum and Solana operate distinct validator architectures and carry different operational risk profiles. Morgan Stanley's Ally Wallace highlighted Galaxy's proven experience supporting both networks, while Galaxy's engineering team noted the complexity of managing divergent client bases and risk considerations across the two protocols.
The staking agreement represents the latest expansion of an intensifying partnership between Morgan Stanley and Galaxy. In June 2026, the firms launched a crypto lending structure tied to Bitcoin ETPs, enabling wealth management clients to lend Bitcoin to Galaxy in exchange for spot crypto ETP shares. Morgan Stanley Wealth Management simultaneously introduced referral capabilities allowing eligible clients to convert held digital assets into spot cryptocurrency ETP shares. Galaxy is concurrently working with BNY Mellon on institutional staking expansion, subject to regulatory approval, further broadening its footprint across major financial institutions.
The Ethereum and Solana ETP launches reflect Morgan Stanley's strategic deepening into institutional crypto products. The firm's earlier success with spot Bitcoin exposure is being leveraged into a multi-asset institutional digital finance platform that now encompasses spot price exposure, yield distribution mechanisms, and custody-integrated conversion pathways. While specific asset levels allocated to Galaxy's staking operations under the new agreements were not disclosed, the arrangement signals institutional demand for regulated staking access at scale.
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