Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee as big banks dip their toes into Bitcoin and crypto, as specialized players expand services. The US banking sector is signaling that crypto is becoming part of the mainstream playbook, after years of operating as a niche experiment.

Crypto News of the Day: Morgan Stanley’s Crypto FOMO Awakens With Bitcoin and Solana ETF Filing

The momentum for 2026 accelerated yesterday when Bank of America (BofA) officially started advising its wealth management clients to allocate up to 4% of their portfolios to digital assets. This marks a clear endorsement of crypto as a legitimate component of diversified strategies.

In the run-up to this debut, BeInCrypto first reported BofA’s plans in early December, indicating that the bank would begin coverage of four Bitcoin ETFs, including BITB, FBTC, Grayscale Mini Trust, and IBIT, starting January 5, 2026.

Today, Morgan Stanley joins the wave, filing for Bitcoin and Solana ETFs, marking another major institutional validation.

Morgan Stanley’s S-1 registration marks a significant milestone in TradFi’s crypto adoption. With $1.6 trillion in assets under management (AUM), the bank is expanding client access to both Bitcoin and Solana through regulated investment vehicles.

This move reflects the growing trend of Wall Street firms turning regulatory filings into concrete action, rather than passive experimentation.

Taken together, the two developments illustrate how traditional financial institutions are responding to market FOMO, racing to offer crypto services before client demand outpaces their capabilities.

“In just 4 months, we’ve built one of the fastest-growing and strongest Bitcoin companies on Earth. Proud to announce that American Bitcoin just leaped to the #19 Largest Public Bitcoin Treasury…Disciplined accumulation. Relentless execution. The best is yet to come,” wrote Eric Trump in a recent post.

Other US banks have also been expanding their crypto footprints for some time. JPMorgan Chase maintains a longstanding engagement through initiatives such as JPM Coin, a bank-issued token facilitating blockchain-based payments. It is also building broader infrastructure projects around digital assets.

Goldman Sachs also maintains crypto trading desks and is offering institutional clients renewed access to crypto markets. Citigroup, although still in its early stages, has expressed an intention to explore custody and trading services.

Charles Schwab has announced plans to offer direct trading of Bitcoin and Ethereum on its client platforms, and PNC Bank has partnered with Coinbase to enable seamless crypto trading through its clients’ accounts.

Banks Experiment with Crypto-Native Products as Regulatory Clarity Drives Adoption

State Street is developing stablecoins and tokenized assets, including bonds and money market shares. This signals that banks’ experimentation goes beyond trading and custody, targeting crypto-native financial products.

In custody-focused services, US Bank (US Bancorp) has resumed Bitcoin custody for institutional managers, including ETF custody.

“…we’re excited to resume the service this year. Following greater regulatory clarity, we’ve expanded our offering to include bitcoin ETFs, which allows us to provide full-service solutions for managers seeking custody and administration services,” said Stephen Philipson, vice chair, US Bank Wealth, Corporate, Commercial and Institutional Banking, in a September announcement.

Meanwhile, BNY Mellon remains an early mover in safeguarding BTC and ETH holdings through dedicated platforms.

Specialized crypto banks and fintech partnerships are also playing a role.

• Cross River Bank, FDIC-insured, partners with Coinbase to facilitate crypto transactions via APIs.

• Anchorage Digital became the first federally chartered crypto bank in the US, focusing on institutional custody and blockchain services.

• Custodia Bank, formerly Avanti Bank, offers crypto-specialized services under a Wyoming charter, reflecting a growing ecosystem of banks designed for digital assets.

Regulatory momentum has been a key enabler. Updated guidance from the Federal Reserve, OCC, and FDIC now allows banks to custody crypto assets, facilitate trades, and offer digital asset services.

This clarity has emboldened traditional institutions to publicly signal their crypto offerings, rather than remaining passive observers. This creates a tipping point for broader adoption.

The trends are such that:

• Custody and institutional products represent the first wave of adoption,

• Followed by wealth management and ETFs,

• Partnerships with exchanges allow banks to enter the market without building a full infrastructure in-house.

As regulatory certainty grows, more institutions are expected to follow, further cementing crypto’s position in mainstream finance.

Chart of the Day

Morgan Stanley Bitcoin Trust S-1 registration filed January 6, 2026. Source: SEC Filing

Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

• Bitcoin ETFs see biggest inflow in 3 months as BlackRock signals crypto’s structural shift.

• Will capital markets continue funding MicroStrategy’s Bitcoin experiment without a premium cushion?

• Update: Kraken denies dark web access claims.

• This Bitcoin price level could separate a bear market from a bull run.

• Arbitrage bots dominate Polymarket with millions in profits as humans fall behind.

• Crypto oversight strengthens in India as 49 exchanges register with FIU.

• Bitcoin whales accelerate exchange activity in early 2026 amid increasingly fragile liquidity.

Crypto Equities Pre-Market Overview

Crypto equities market open race: Google Finance