Morgan Stanley sets up Digital Asset Lab

Morgan Stanley has established a Digital Asset Lab to test stablecoins, asset tokenization and decentralized finance, or DeFi, technology, Bloomberg reported. The lab is designed to validate technologies in a segregated environment with security and regulatory safeguards so new blockchain systems do not affect the bank’s core infrastructure. Morgan Stanley plans to use the lab to test not only stablecoins, but also tokenized deposits, central bank digital currencies, or CBDCs, and tokenized money market funds, or MMFs.