Morgan Stanley, the investment bank with more than $1.9 trillion in assets, has disclosed XRP holdings through exchange-traded funds. The firm also increased its position in Armada Acquisition Corp II, a special purpose acquisition company that is partnering with Ripple-backed Evernorth Holdings.
XRP Exposure Through ETFs
The disclosure puts Morgan Stanley among the largest financial institutions to hold XRP, the digital token at the center of Ripple's payment network. The bank's ETF portfolio now includes the cryptocurrency, though the size of the position was not detailed in the filing.
This is a notable step for a bank of Morgan Stanley's scale. Most major banks have stayed away from direct crypto exposure, but the ETF route offers a regulated way in. The bank hasn't said whether it plans to expand these holdings or keep them as a small allocation.
A Deeper Bet on Ripple's Orbit
Separately, Morgan Stanley increased its holdings in Armada Acquisition Corp II. That SPAC has agreed to merge with Evernorth Holdings, a company backed by Ripple. The move suggests the bank is building a broader relationship with the Ripple ecosystem, beyond just the token itself.
Armada Acquisition Corp II is a blank-check company that raised money to take a private firm public. Evernorth, which focuses on healthcare payments, is one of several ventures tied to Ripple's network. Morgan Stanley's larger stake means it will have more say when the merger closes.
The bank's dual moves — XRP in ETFs and a bigger SPAC position — point to a deliberate strategy. It's not just a passive bet on a cryptocurrency; it's a bet on the infrastructure around it.
What the Filings Show
The disclosures come from regulatory filings that list Morgan Stanley's holdings. The bank did not comment on the changes, and the filings don't specify the exact dollar amounts involved. But the fact that a bank of this size is touching XRP at all is significant.
Ripple has been fighting a long legal battle with the U.S. Securities and Exchange Commission over whether XRP is a security. That case is still unresolved, which makes Morgan Stanley's decision to hold XRP through ETFs even more striking. The bank is effectively taking a position on a token whose regulatory status remains in question.
For now, the bank's exposure is limited to what it holds in ETFs and the SPAC stake. Whether that grows will depend on how the regulatory landscape shifts. The next court hearing in the Ripple case is scheduled for later this year, and that could influence Morgan Stanley's next move.
