TLDR
- Phong Le and Amy Oldenburg will speak at Strategy World on Feb. 23-26.
- Le called for review of Bitcoin’s 1,250% Basel III risk weight.
- Morgan Stanley backs US spot Bitcoin ETFs and seeks more crypto funds.
- The bank suggests 2.1% to 4.1% portfolio allocation to digital assets.
Strategy CEO Phong Le will discuss Bitcoin with Morgan Stanley’s head of digital assets next week. The session will focus on long-term Bitcoin strategy and institutional adoption.
The discussion will take place at the Wynn during the annual Strategy World event. The event runs from February 23 to 26 and gathers business and finance leaders.
Bitcoin Strategy and Institutional Adoption in Focus
Phong Le will join Amy Oldenburg, Morgan Stanley’s head of digital assets, on stage next Wednesday. The session will address how institutions approach Bitcoin exposure.
The speakers are expected to examine adoption trends in emerging markets. They will also review how traditional finance firms respond to rising crypto demand.
Strategy, listed on Nasdaq as MSTR, is known for its Bitcoin treasury model. The company has positioned Bitcoin as a core corporate reserve asset.
Michael Saylor, executive chairman and founder of Strategy, will deliver a keynote on digital credit on February 24. The event agenda includes companies such as Coinbase, BitGo, Anchorage Digital, and Bitwise.
Basel Capital Rules and Bitcoin Risk Weight Debate
Ahead of the event, Le commented on Basel capital standards through social media platform X. He called for a review of Bitcoin’s treatment under Basel III rules.
“The Basel Accords set global bank capital standards and risk-weighting rules for assets,” Le wrote. He added that these frameworks shape how banks engage with digital assets, including Bitcoin.
Bitcoin carries a 1,250% risk weight under Basel III standards for unsecured crypto exposure. This is the highest category on the standardized chart shared online.
Le stated, “If the US wants to be the Crypto Capital of the World, our implementation of Basel capital treatment deserves careful review.” He noted that the Basel Committee includes central banks and regulators from 28 jurisdictions.
Jeff Walton, chief risk officer at Strive, also commented on capital rules. He wrote that if the US seeks leadership in crypto, banking regulations may need changes because risk is mispriced.
A chart shared by Walton listed cash, gold, and sovereign debt at 0% risk weight. Public equity ranged from 250% to 300%, while private equity was shown at 400% or more.
Morgan Stanley Expands Digital Asset Offerings
Morgan Stanley has increased its crypto activity since the launch of US spot Bitcoin ETFs in 2024. The bank was the first major Wall Street firm to allow advisors to offer these ETFs to clients.
Its $1.8 trillion asset management division is seeking approval to offer funds tied to Bitcoin, Ethereum, and Solana. The bank is also considering a digital wallet product later this year.
Morgan Stanley’s global investment committee has suggested that clients may allocate between 2.1% and 4.1% of portfolios to digital assets. The firm has described Bitcoin as digital gold.
It has also referred to Ethereum as a foundational computational infrastructure. These views reflect a broader effort to integrate digital assets into traditional investment strategies.
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