Morgan Stanley CEO Ted Pick has revealed that the banking giant is actively exploring crypto offerings for its clients. Speaking at the World Economic Forum in Davos, Pick highlighted the firm’s ongoing discussions with U.S. financial regulators to determine how these offerings can be safely introduced.
“For us, the equation is really around whether we, as a highly regulated financial institution, can act as transactions,” Pick stated. He added, “We’ll be working with Treasury and the other regulators to sort of figure out how we can offer that in a safe way.”
Morgan Stanley Exploring From Bitcoin ETFs to Broader Crypto Adoption
Morgan Stanley has been gradually deepening its involvement in digital assets. In 2024, the bank gained exposure to the crypto market through Bitcoin exchange-traded funds (ETFs), recommending these investment vehicles to its clients. This marked a significant shift in the firm’s strategy toward embracing crypto as a viable asset class.
In January 2024, Andrew Peel, Morgan Stanley’s head of digital asset markets, described Bitcoin and central bank digital currencies (CBDCs) as a “paradigm shift” with the potential to disrupt global settlement systems, including the SWIFT interbank messaging network.
By August 2024, Morgan Stanley allowed its financial advisers to pitch Bitcoin ETFs to clients, a decision that cemented its role as a major player in integrating traditional finance with the crypto ecosystem. The bank disclosed holding $188 million in Bitcoin ETF assets across more than 5.5 million shares of BlackRock’s iShares Bitcoin Trust ETF by mid-August.
Criticism and Regulatory Concerns
Morgan Stanley’s foray into Bitcoin ETFs did not escape criticism. Former Securities and Exchange Commission (SEC) Chief of Internet Enforcement, John Reed Stark, raised concerns over the regulatory implications of the move. Stark argued that the decision exposed the bank to heightened scrutiny from both the SEC and the Financial Industry Regulatory Authority (FINRA).
“Morgan Stanley has just voluntarily subjected themselves to what will likely become the largest SEC and FINRA examination sweep in history,” Stark wrote in an X post on Aug. 9, 2024.
Despite these challenges, Morgan Stanley’s efforts to balance regulatory compliance with its crypto ambitions underscore the growing interest in digital assets within the traditional banking sector. The bank’s moves could signal a broader trend of institutional adoption as the industry continues to evolve.
