On May 1, 2025, Morgan Stanley announced its intentions to start cryptocurrency trading via its E-Trade platform. According to a Bloomberg report, the bank aims to launch these crypto services in 2026, although the project is still in its early stages.
Furthermore, Morgan Stanley is exploring partnerships with established cryptocurrency firms to facilitate its brokerage clients in purchasing and trading popular digital assets such as Bitcoin and Ethereum.
Notably, this decision follows a stern warning from Eric Trump, son of former President Donald Trump and Executive Vice President of the Trump Organization, urging traditional banks to be wary of impending disruptions.
The financial industry, especially traditional banking, is witnessing significant changes as users increasingly trust digital currencies and decentralized finance (DeFi).
Eric Trump has stated, “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. The modern financial system is broken, it’s slow, it’s expensive.”
🚨JUST IN: Eric Trump claims there’s not a single thing that banks do that can’t be done better, cheaper, more efficiently, and faster on the blockchain.
Sounds like he’s talking about $XRP. 👀 pic.twitter.com/Wj0m6oNZhy — Brett (@Brett_Crypto_X) April 3, 2025
Explore: 20+ Next Crypto to Explode in 2025
Eric Trump’s Warning: Traditional Banks at Risk
Eric Trump voiced concerns during Token49 Dubai, stating, “What actually got me into cryptocurrency is the fact I realized our banking system was weaponized against the vast majority of people in our country… if the banks don’t watch what’s coming, they’re going to be extinct in 10 years.”
He argues that decentralized finance offers a better alternative, stating, “You can open up a DeFi app right now, you can open up any cryptocurrency app, and you can send money, wallet to wallet, instantaneously, without the expense, without the variability of banks.”
Major financial institutions like JPMorgan and Goldman Sachs are already adapting by launching blockchain initiatives and crypto trading desks, while several crypto companies are actively seeking banking licenses in the U.S.
The Future of Banking
The need for banking licenses is seen as essential for stabilizing the crypto sector. According to cryptocurrency analyst Sarah Johnson, “As these platforms mature and seek to serve a broader customer base, banking licenses provide the regulatory framework and customer protections needed to operate at scale within the existing financial ecosystem.”
This trend highlights the predicted competition between crypto firms and traditional banks, as they vie for a share of the evolving financial landscape.
