Morgan Stanley is said to plan initiating crypto trading using their E-Trade account on May 1, 2025. Bloomberg reported that this is one of the largest United States banks’ plans for offering crypto services by 2026, although it is in the very early stages. This coincides with the shift of accepting digital assets and DeFi into traditional banking systems.
Morgan Stanley’s push for blockchain has them rumored to be working towards purchasing an established crypto firm or a few in order to finalize the internal protocols needed to allow their clients access to buying and selling significant tokens. The step taken by Morgan Stanley hints at the existing demand for such services in other banking institutions.
Warning to Traditional Banks
This threatening advice from Donald Trump’s son has not come randomly, however. Eric Trump at the Token2049 Dubai convention publicly discussed blockchain and cryptocurrency and disclosed his opinion on cryptocurrencies—that he believes banks have no future if they don’t embrace cryptocurrencies alongside other new technologies. Tied to that, he reiterated traditional banking ‘sows’ greed, thus taking” advantage—”unequivocably”—of” people who aren’t part of the elite social stratum. In summary, ‘transform or die’ was the essence of his message directed towards banking institutions.
This change in strategy from Morgan Stanley is striking.
Dominance of DeFi and Blockchain
Eric Trump’s position in a recent debate argued that the approach of blockchain is better than the current model utilized by financial institutions. He said, “There’s nothing that can be done on blockchain that can’t be done better than the way that the current financial institutions are working.” He went further to give examples of the efficiency of DeFi apps, stating, “The gap between banking, random payments, and purchasing cryptocurrency is all solved by a smart device, and rationally every financial function is available on an application. So, you can literally send money directly from one wallet to another in real-time, no delays, no expenses, and far less compared to banks.” He argued that customers are able to circumvent currency-conversion fees and hidden middlemen when transmitting money overseas. Based on his point of view, he issued a stark warning to the incumbents: “If the banks don’t watch what’s coming, they’re going to be extinct in ten years.”
Primary Institutions React
It references that large banks are, in fact, responding to the popularity of digital currencies. It mentions both two presented examples of them launching blockchain networks and crypto trading desks like JPMorgan and Goldman Sachs.
The broader banking system is still figuring out how to approach cryptocurrency, but these actions by financial heavyweights are indicators that they are beginning to embrace the reality imposed by digital assets.
Cryptocurrency Institutions Compete for Banking Charter in the United States
In any case, a report indicates that crypto institutions themselves are now competing for United States banking charters. Competitive applications for these charters will be put in by prominent crypto companies like Circle, Coinbase, BitGo, and Paxos. Depending on their business models, these companies are going for different classes of banking licenses. While some are pursuing national trust or industrial bank charters, which would enable them to function like a bank, others are focused on more refined licenses aimed at issuing and managing stablecoins, along with a few other services.
Evolution of the Crypto Industry
Cryptocurrency experts have been commenting on the new trend of crypto companies applying for banking licenses, like Sarah Johnson, who stated that this “represents a natural evolution for the crypto industry.” She further explained that the “banking licenses…enable protective regulations and customer safeguard structures necessary to function optimally in the mature financial system.”
Predictions on Market Convergence
The licensing plans for crypto companies and the trading venture for cryptocurrencies by Morgan Stanley are predicted by crypto industry specialists, notes the source. Apparently, both the President of Ripple and the Bank’s CEO, Sygnum, predicted that these companies would pursue the banking licenses one way or another. Reportedly, they also predicted that American banks will eventually compete to provide blockchain services, indicating this merger of traditional finance and cryptocurrency service. Morgan Stanley’s involvement along with the crypto companies’ rumored banking license plans means this convergence is in motion.
