Key Highlights
- Galaxy will provide staking infrastructure for Morgan Stanley’s Ethereum Trust (MSSE) and Solana Trust (MSOL).
- Galaxy is one of three firms selected to support staking across the two products.
- The ETPs plan to stake part of their ETH and SOL holdings, with staking rewards expected to be distributed to shareholders.
Galaxy will provide staking infrastructure for two new digital asset exchange-traded products launched by Morgan Stanley Investment Management, adding staking to the asset manager’s exposure to Ethereum and Solana.
The products, the Morgan Stanley Ethereum Trust (NYSE Arca: MSSE) and Morgan Stanley Solana Trust (NYSE Arca: MSOL), are designed to track the performance of ETH and SOL respectively, and intend to stake a portion of their holdings through institutional validators.
According to an official announcement published on August 18, Galaxy is one of three firms selected to support staking across the two products. The announcement did not disclose how much of the ETPs’ assets will be delegated to Galaxy.
Galaxy confirmed the selection in a post on its official X account the same day, without providing additional detail on the scope of its role.
Staking rewards to be distributed to shareholders
The ETPs will stake part of their underlying ETH and SOL holdings, with the resulting rewards expected to be distributed to shareholders through regular payments.
That structure allows investors to gain exposure to staking rewards through the exchange-traded products rather than directly managing validators or staking their own assets.
The eventual benefit to shareholders will depend on factors including the amount of ETH and SOL staked, network staking yields, validator performance and applicable fees.
Morgan Stanley Investment Management’s Global Head of ETFs, Ally Wallace, said:
“Staking is a core component of the Ethereum and Solana ecosystems, and we’re focused on providing digital asset solutions that meet the growing demand we’re seeing from clients while adhering to Morgan Stanley’s standards.”
Galaxy reports $2.8 Billion in staked assets
Galaxy said its Onchain Infrastructure team had approximately $2.8 billion in staked assets at the end of Q2 2026, covering Ethereum, Solana and other proof-of-stake networks.
Steve Kurz, Galaxy’s Global Co-Head of Digital Assets, said the firm was assessed separately for its Ethereum and Solana capabilities.
“Ethereum and Solana have different validator requirements, different client bases, different risk considerations.”
The company did not provide details on the fees it will receive from the Morgan Stanley products or the expected amount of staking rewards.
Galaxy’s role with banks and asset managers expands
The Morgan Stanley announcement follows several other developments involving Galaxy and traditional financial institutions.
On August 14, Israel’s Bank Leumi announced plans to offer Bitcoin, Ethereum and Solana trading through its Leumi Trade app, with Galaxy providing trading technology and custody infrastructure.
Galaxy has also been involved in a potential staking expansion with BNY, which is exploring staking services for institutional clients using Galaxy’s infrastructure. That service remains subject to regulatory clearance.
Morgan Stanley and Galaxy have previously worked on a separate crypto initiative. In June, the firms introduced a structure connecting crypto lending with Bitcoin ETPs for eligible high-net-worth investors. That arrangement focused on lending rather than staking.
The latest development therefore adds another use case for institutional crypto infrastructure, this time involving staking within exchange-traded products.
Staking moves further into traditional investment products
The inclusion of staking in MSSE and MSOL reflects the growing use of network participation as part of institutional digital asset products.
For proof-of-stake networks such as Ethereum and Solana, staking involves committing tokens to help validate transactions and secure the network in exchange for rewards. When conducted through an ETP, the process is handled by the fund and its infrastructure providers rather than individual shareholders.
The approach also introduces additional operational considerations, including validator selection, custody arrangements, network risks and the treatment of staking rewards.
For now, Morgan Stanley has not disclosed the proportion of the ETPs’ holdings that will be staked or provided details on the expected shareholder distributions.
The Galaxy selection places the company in an infrastructure role behind the products, while the ETPs remain managed by Morgan Stanley Investment Management.
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