Staking from Wall Street: Morgan Stanley will launch passive income on Ethereum and Solana ETP

The investment arm of Wall Street giant Morgan Stanley Investment Management has selected Galaxy Digital as a technical validator for its new Ethereum and Solana-based exchange traded products (ETPs). The decision marks an important milestone: one of the world’s largest investment banks is moving from simply holding cryptocurrency to generating passive income through staking. Unit holders of the new funds will receive regular rewards directly into their accounts.

Why did Morgan Stanley choose staking?

The traditional interest of large funds in cryptocurrencies has long been limited to spot ETFs, which do not generate additional returns. The introduction of staking is a game changer. Investors not only get access to fluctuations in the value of the underlying asset, but also the interest income paid by the blockchain for maintaining the security of the network.

Parameters of new products look like this:

• Assets supported:Ethereum (ETH) and Solana (SOL) through the MSSE and MSOL funds respectively.
• Profitability:Part of the staking rewards will be converted and distributed among shareholders.
• Infrastructure provider:Galaxy Digital takes care of all the technical part of node management.

How will work with Galaxy work?

Galaxy will take over the administration of validators and ensuring the security of transactions. The collaboration reduces technical risks for Morgan Stanley and attracts conservative investors who want to profit from blockchain networks without having to set up nodes or manage private keys themselves.