Morgan Stanley's Former Digital Asset Head Launches DeFi Venture in Switzerland

Andrew Peel, the former head of digital asset markets at Morgan Stanley, has departed from the firm to establish his own investment and trading technology company with a focus on decentralized finance (DeFi). Peel, who joined Morgan Stanley in 2018 after working at Credit Suisse, left the financial giant in March. His new venture aims to bridge the gap between traditional finance and the emerging DeFi landscape.

Peel's new firm will be based in Zug, Switzerland, a region known for its supportive environment for cryptocurrency and blockchain technologies. The company will offer a combination of asset management and technology services, with plans to issue and invest in tokenized DeFi assets such as blockchain-based investment funds. Additionally, the firm will develop trading infrastructure tailored for institutional investors entering the crypto space.

As regulatory frameworks for digital assets continue to evolve, Peel's firm aims to provide tools that facilitate the seamless integration of traditional financial institutions into the crypto market. This move comes at a time when Morgan Stanley is also expanding its digital asset offerings, with plans to introduce crypto trading services on its retail-focused E*Trade platform by next year. This follows the bank's 2021 initiative to provide Bitcoin fund access to institutional clients.

Peel's departure coincides with a broader trend of increased interest in crypto from Wall Street, driven by a more favorable policy environment in the U.S. since the return of Donald Trump to the presidency. The approval of spot Bitcoin ETFs in early 2024 and the growing demand for tokenized money market funds from firms like BlackRock and Franklin Templeton have further fueled this momentum.

In a related development, BNY Mellon has confirmed that Caroline Butler, its global head of digital assets, is also leaving the bank. Carolyn Weinberg, BNY’s chief solutions innovation officer, will continue to oversee its digital asset strategy. This shift in leadership at major financial institutions reflects the dynamic nature of the crypto industry and the ongoing efforts to integrate digital assets into traditional financial services.