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Hyperlayer has launched a loan deposit programme with Morgan Stanley for Morgan Stanley Wealth Management clients.
The feature lets eligible clients access securities-backed loan proceeds directly within their existing Morgan Stanley accounts. It automatically applies restrictions on how those funds can be used, in real time, as clients spend the money.
The arrangement works with Morgan Stanley's existing banking systems, allowing the feature to be introduced without changes to the bank's core infrastructure. Clients can therefore receive loan proceeds through accounts they already use, rather than through a separate process.
For Morgan Stanley, the move focuses on securities-based lending, which allows clients to borrow against eligible assets. The new feature places loan proceeds inside existing accounts while maintaining controls over how the money can be used.
The development reflects a broader push by large financial institutions to update customer-facing services without reopening core banking platforms, which can be difficult and expensive to change. Technology suppliers have increasingly focused on adding layers alongside legacy systems to handle specific rules, workflows and product functions.
Founded in 2023, Hyperlayer describes itself as a banking technology company built around that model. The company was set up by Rob Rooney and Paul Rolles and says it is working with large financial institutions on banking transformation projects.
Client access
Under the Morgan Stanley arrangement, clients do not need to leave their existing account set-up to access loan proceeds. Restrictions tied to those proceeds are then enforced automatically as transactions take place.
The approach addresses a common banking technology issue: new product features often require separate workflows or manual controls because underlying systems are difficult to modify. By embedding the rules within the account experience, the companies aim to reduce operational friction while keeping compliance controls in place.
Rob Rooney, Co-founder and Chief Executive Officer of Hyperlayer, said the project focused on adapting a specific banking product rather than remaking a broader system.
"Every great bank has products that already work well, and the strongest ideas often come from refining one specific product rather than everything at once," Rooney said.
"Securities-based lending is a good example. Morgan Stanley Wealth Management already offers a streamlined borrowing experience. Working with them, we built the ability to configure rules inside the account and execute them automatically, in real time. The result is the rapid delivery of one more seamless moment for clients inside the institution they already trust, with no disruption," he said.
Banking systems
The partnership also shows how banks are trying to add new functions while avoiding direct changes to core platforms. These systems often sit at the centre of deposit processing, account management and transaction controls, and banks tend to update them cautiously because of their scale and regulatory demands.
Instead, many institutions have pursued narrower changes that improve the customer experience around a single product line. In this case, that product line is lending tied to wealth management accounts, where both speed of access and control over proceeds can matter to clients and the bank.
Aleksey Shevchenko, Managing Director and Head of Deposits and Core Banking Technology at Morgan Stanley, said the aim was to widen access options for clients while meeting use-of-proceeds rules.
"Our goal was to give eligible clients more options to access their loan proceeds while meeting applicable use-of-proceeds requirements. Working with Hyperlayer, we were able to develop and launch the solution quickly, enhancing the Morgan Stanley banking experience. The technology is extendable, so we aim to apply the same approach to other banking capabilities in the future," Shevchenko said.
The feature offers a current example of how wealth management and banking technology teams are working together on changes that touch both lending and deposits. It also underlines continued demand for tools that allow banks to add product-specific controls without replacing central systems.
Founded by Rooney and Rolles, Hyperlayer says it is working with Tier 1 financial institutions globally on transformation projects.