On 1 May 2025, Morgan Stanley revealed its plan to launch crypto trading through its E-Trade platform. According to a Bloomberg report, one of the most substantial banks -Morgan Stanley- plans to launch the crypto services in 2026. However, the project is in its nascent stage for now.
Furthermore, Morgan Stanley is considering partnering with one or multiple established crypto firms as it sets up the mechanics for the brokerage’s clients to buy and sell popular tokens, including Bitcoin and Ether.
Notably, the move comes as Eric Trump, Executive Vice President of the Trump organization and, of course, the son of US President Donald Trump, issued a warning of extinction to traditional banks.
The financial landscape, specifically traditional banking, is going through a seismic shift, with digital assets and decentralized finance (DeFi) gaining trust among users.
Eric Trump has chosen a side. “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 said. “The modern financial system is broken, it’s slow, it’s expensive.”
JUST IN: Eric Trump 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
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If Banks Don’t Watch What’s Coming, They’ll Be Extinct In 10 Years – Eric Trump
Speaking to CNBC during Token49 Dubai, Eric Trump said, “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, either the people that don’t have the zeros on their balance sheet, or people who might have worn that red hat that said ‘Make America Great Again.’ And it forced me into the crypto world. And I’m telling you, if the banks don’t watch what’s coming, they’re going to be extinct in 10 years.”
According to him, decentralized finance offers a superior alternative. “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,” he added.
Major financial institutions are already responding. JPMorgan and Goldman Sachs have both launched blockchain networks and crypto trading desks, seeking to adapt to the new reality. Conversely, crypto institutions are vying for US banking licenses now.
Explore: Circle, BitGo, Coinbase, Paxos Go For US Banking Licenses
Circle, BitGo, Coinbase, Paxos Go For US Banking Licenses
Major crypto companies, such as Circle, Coinbase, BitGo, and Paxos, are preparing to apply for banking licenses in the US.
The companies are currently pursuing various types of banking licenses. It mostly depends on their specific business models. While some are seeking national trust or industrial bank charters, which would allow them to operate with capabilities similar to traditional banking institutions, others are focusing on more specialized licenses that would primarily enable stablecoin issuance and custody services.
“This represents a natural evolution for the crypto industry,” explains 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.”
So, who called this? Both Sygnum Bank CEO and Ripple President predicted that crypto companies would go for banking licenses sooner rather than later. They also predicted that US banks will eventually compete to offer crypto services.
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Key Takeaways
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Morgan Stanley’s decision follows a wave of regulatory rollbacks under the Trump administration, which has taken a more lenient approach to crypto enforcement and signaled support for innovation in digital assets.
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Eric Trump’s warnings reflect a broader trend: the rapid ascent of DeFi platforms and digital currencies.
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