Morgan Stanley Set to Introduce Cryptocurrency Trading: Are Banks Heeding Eric Trump’s Caution?

On May 1, 2025, Morgan Stanley announced its intentions to initiate crypto trading via its E-Trade protocol. As per a report from Bloomberg, the prominent bank -Morgan Stanley- is set to roll out these crypto services in 2026. Nonetheless, the initiative is currently in its early stages.

Additionally, Morgan Stanley is contemplating collaborations with one or more established crypto companies as it organizes the framework for its clients to trade popular cryptocurrencies like Bitcoin and Ether.

Importantly, this news coincides with Eric Trump, Executive Vice President of the Trump Organization and son of US President Donald Trump, issuing a cautionary message suggesting traditional banks may face extinction.

The financial environment, particularly traditional banking, is experiencing a significant transformation, with digital assets and DeFi (Decentralized finance) becoming more credible to users.

Eric Trump has made his position clear. “There’s nothing achievable on distributed database that current financial institutions do better,” he stated. “The contemporary financial system is flawed, it’s sluggish, and it’s costly.”

BREAKING: Eric Trump claims there’s not a single task banks handle that couldn’t be executed better, more affordably, efficiently, and swiftly on the blockchain.

Sounds like he’s referencing $XRP. pic.twitter.com/Wj0m6oNZhy

— Brett (@Brett_Crypto_X) April 3, 2025

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If Banks Don’t Adapt to Upcoming Changes, They Might Be Extinct Within 10 Years – Eric Trump

In an interview with CNBC during Token49 in Dubai, Eric Trump remarked, “The primary reason I entered the crypto space is that I recognized our banking system was weaponized against a large segment of our population, whether those lacking zeros on their balance sheets or individuals who may have donned that red hat reading ‘Make America Great Again.’ It propelled me into the realm of crypto asset. I’m warning you, if the banks do not prepare for what’s forthcoming, they will face extinction in a decade.”

He believes that DeFi presents a much better option. “Presently, you can access a DeFi application, utilize any cryptocurrency platform, and transfer money, crypto wallet to wallet, instantly, without the costs and inconsistencies of banks,” he emphasized.

Prominent financial entities are already strategizing. JPMorgan and Goldman Sachs have initiated blockchain networks and crypto trading desks to adapt to the evolving landscape. In contrast, digital currency organizations are actively pursuing U.S. banking licenses now.

Explore: Circle, BitGo, Coinbase, Paxos Seeking U.S. Banking Licenses

Circle, BitGo, Coinbase, Paxos Seeking U.S. Banking Licenses

Major crypto asset firms such as Circle, Coinbase, BitGo, and Paxos are gearing up to apply for banking licenses in the United States.

The firms are currently navigating various types of banking licenses, largely based on their unique business frameworks. While some target national trust or industrial bank charters to adopt operations akin to conventional banking entities, others are concentrating on specialized licenses that primarily facilitate stablecoin issuance and custody services.

“This marks a natural progression for the cryptocurrency sector,” states crypto asset analyst Sarah Johnson. “As these platforms advance and aim to serve a wider audience, banking licenses offer the necessary regulatory framework and consumer protections to function extensively within the current financial landscape.”

So who foresaw this? Both Sygnum Bank CEO and Ripple President anticipated that crypto firms would seek banking licenses sooner rather than later. They also predicted a future where U.S. banks would compete to deliver crypto services.

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The article Morgan Stanley To Launch Crypto Trading: Are Banks Paying Attention To Eric Trump’s Warning? first appeared on 99Bitcoins.