Morgan Stanley CEO Ted Pick announced today that the bank is exploring ways to deepen its involvement in crypto markets and is working closely with U.S. regulators to navigate the landscape that has emerged under the pro-crypto Trump administration.
Speaking to CNBC’s Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland, Pick touched on the bank’s cautious yet forward-looking approach to cryptocurrencies. “The equation for us revolves around whether we can act as a processor as a highly regulated financial institution,” Pick said. “We will work with the Treasury and other regulators to figure out how we can deliver that safely.”
Morgan Stanley has a history of pioneering the use of cryptocurrencies among traditional financial institutions. In 2021, the bank became the first major U.S. bank to offer Bitcoin funds to its wealthy clients. Last year, the bank took its commitment even further by spearheading efforts to offer BTC ($103,703.54) exchange-traded funds in response to growing client demand for crypto exposure.
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But under the Biden administration, banks have faced stricter restrictions on their involvement in digital assets. While trading desks can deal in Bitcoin derivatives, direct ownership of “physical” BTC is prohibited. Goldman Sachs CEO David Solomon echoed that sentiment earlier this week, noting that regulatory hurdles remain a significant hurdle.
“Right now, from a regulatory standpoint, we can’t own BTC,” Solomon said, adding: “If the world changes, we can have a discussion about that.”
Pick expressed cautious optimism about Bitcoin’s long-term viability despite its history of volatile trading and industry scandals. Currently trading above $100,000, BTC may be approaching what he called “escape velocity.”
“The broader question is whether some of this has matured, whether it has reached escape velocity,” Pick said. “Time is crypto’s friend; the longer it trades, the perception becomes reality.”
*This is not investment advice.
Continue Reading: Banks Started to Become More and More Bitcoin-Friendly! Now Morgan Stanley CEO Makes Cryptocurrency Statement at Davos
