What to know:
- Morgan Stanley updated its Solana Trust filing with staking and custody details today.
- The proposed MSOL trust may stake up to 100% of SOL holdings under set conditions.
- BNY Mellon and Coinbase Custody were named as SOL custodians for the Solana trust.
Morgan Stanley has advanced its Solana ETF plan with an amended filing that adds staking, custody, and operating details. The update gives investors a clearer view of the proposed trust as U.S. crypto fund competition moves beyond Bitcoin and Ethereum.
The filing was submitted on May 20 and updates the proposed Morgan Stanley Solana Trust. If cleared by regulators, the product is expected to trade on NYSE Arca under the ticker MSOL.
The amendment fills in a number of placeholders in the firm’s filing from January. It also outlines how the trust would track Solana, manage assets, pay out rewards, and facilitate creation or redemption activity.
Also Read: Circle CCTP Launch on Stellar Boosts Cross-Chain USDC Transfers
Morgan Stanley Outlines SOL Staking Plan
According to the document, the trust aims to reflect the performance of Solana’s native token, SOL. It will use the CoinDesk Solana Benchmark at 4 p.m. New York Settlement Rate.
The trust also aims to add staking rewards to its total return after expenses. Morgan Stanley stated that the fund will adopt a passive strategy and will not employ any leverage, derivatives, or speculative trading methods.
The major difference is that it has been expanded with a detailed staking frame. The trust can stake 100% of its SOL holdings, subject to the liquidity, regulatory, and redemption requirements.
Staking will be carried out through third-party providers. These providers will be selected by the custodians or approved by the sponsor.
According to the filing, the private keys will remain under the control of custodians. Staking providers will not be granted the right to transfer, withdraw, or otherwise control the assets of the trust.
Rewards are expected to be distributed monthly when practical. Distributions will be at least quarterly if monthly payments are not possible.
Morgan Stanley Names Custodians for Solana Trust
Morgan Stanley has appointed BNY Mellon and Coinbase Custody Trust Company as the custodians for SOL. The sponsor will have discretion to divide assets between the two custody providers.
The filing also identifies CSC Delaware Trust Company and AGS Trustees Limited as trustees. Their tasks are connected to the legal and administrative framework of the trust.
According to the amended prospectus, the number of shares to be issued in creation and redemption baskets will be 10,000. The initial seed investment should involve 50,000 shares and approximately $1 million in proceeds.
The document states, however, that the numbers are subject to change prior to the date of registration. It also outlines both cash and in-kind creation and redemption processes.
Authorized participants will be liable for cash transaction slippage. That detail explains how trading costs might be managed if shares are created or redeemed.
The update shows Morgan Stanley’s push into regulated digital asset products. It ranks the firm with financial institutions for crypto ETF access in the United States.
Also Read: XRP Ledger Eyes 2035 Quantum Shift After Ripple’s Powerful Security Partnership
Be the first to comment