Morgan Stanley CEO’s Plans for Crypto Market Integration

Morgan Stanley CEO Ted Pick has announced that the bank is collaborating with U.S. regulators to explore offering cryptocurrency transactions. Speaking at the World Economic Forum in Davos, Switzerland, Pick highlighted the bank’s commitment to deepening its involvement in cryptocurrency markets under the regulatory framework of the pro-crypto Trump administration.

Morgan Stanley CEO Working with Regulators on Crypto Offerings

Pick noted that the bank is keen on following the rules as it seeks to offer cryptocurrency services. He told CNBC’s Andrew Ross Sorkin,

“For us, really the question is: can a highly regulated financial institution participate in transactions.”

The CEO said that Morgan Stanley is to work with the US Treasury and other regulators to find out how to provide the crypto services safely and effectively. This step is consistent with the group’s history of being one of the pioneer investors in the cryptocurrency market.

Morgan Stanley has been one of the most pro-crypto among the US banks for quite some time now. It was also the first large American bank to announce that it will provide its high net worth clients with access to Bitcoin funds in 2021. In the previous year, the bank added Bitcoin ETFs to its list of products that the bank offers to its clients given the increasing demand.

Pick said that client engagement was the reason for these initiatives. ”Our financial advisors were answering questions from clients about how to allocate to Bitcoin,” he said, evidencing the rising interest in digital asset management products among the wealthy.

Regulatory Landscape and Challenges

The current Biden administration had restricted banks to operate in cryptocurrency markets fully. Institutions such as Morgan Stanley and Goldman Sachs were only allowed to trade Bitcoin futures and the firms were banned from directly owning Bitcoin.

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Goldman Sachs CEO David Solomon has recently also echoed these regulatory limits. “Right now from the perspective of the regulator we can’t own Bitcoin,” Solomon stated. But he said that the possibility of change is possible, “If the world changes, we can discuss it.”

Bitcoin’s Endurance and Institutional Interest

Pick also added that over the years Bitcoin has managed to stand strong with all the fluctuations in the market and scandals within the industry. Cryptocurrency is now being sold for more than $100,000.

“The bigger picture is whether some of this has grown up, whether it is self-sustaining,” Pick said. He pointed out that time has clearly helped the industry, and acceptance has made belief a fact.

Many other banking executives have shared the same view as Pick. Bank of America CEO Brian Moynihan also stated positively about the prospects of crypto as a payment mean if only the regulators would set certain guidelines. “If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard,” Moynihan said.