Crypto’s integration with traditional finance is accelerating. Major banks are rolling out crypto trading services, expanding stablecoin initiatives and preparing for regulatory shifts that could let tokenized assets serve as collateral in derivatives markets.
This week’s Crypto Biz dives into Morgan Stanley’s plan to launch crypto trading via E*Trade, JPMorgan CEO Jamie Dimon’s cautious acknowledgment of stablecoins and the Commodity Futures Trading Commission’s (CFTC) exploration of tokenized collateral. Plus, Strategy’s Michael Saylor dismisses talk of a fading bull market, predicting institutional demand will push Bitcoin higher in Q4.
Morgan Stanley to offer crypto trading via E*Trade
Morgan Stanley’s discount brokerage E*Trade will begin offering cryptocurrency trading in 2026 through a partnership with infrastructure provider Zerohash, marking another sign that major banks are moving into digital assets.
A Morgan Stanley spokesperson confirmed to Reuters that E*Trade clients will soon be able to buy Bitcoin (BTC), Ether (ETH) and Solana (SOL), aligning with earlier reports about the bank’s crypto push.
Morgan Stanley acquired E*Trade in 2020 for $13 billion. At the time, the platform had about 5.2 million users.
By entering crypto trading, E*Trade will compete directly with Robinhood, the popular discount brokerage that has aggressively expanded its crypto offerings, including this year’s $200 million acquisition of exchange Bitstamp.
Jamie Dimon is “not particularly worried” about stablecoins
JPMorgan CEO Jamie Dimon told CNBC this week that he’s “not particularly worried” about stablecoins, indicating that he doesn’t see blockchain-based tokens as a threat to his bank’s core business model.
Still, Dimon emphasized that bank executives “should be on top of it and understand it,” citing the sector’s rapid growth and the recently passed GENIUS Act, which, possibly shaped by banking lobbyists, bans yield-bearing stablecoins.
“There’ll be people who want to own dollars through a stablecoin outside the US, from bad guys to good guys to certain countries where you’re probably better off having dollars and not putting into the banking system,” Dimon said.
Although Dimon has long been a critic of cryptocurrencies, JPMorgan has taken steps in the space. The bank has confirmed reports that major institutions are exploring “whether they should have a consortium” to issue a stablecoin, Dimon said.
CFTC exploring framework to allow tokenized assets as collateral in derivatives
The Commodity Futures Trading Commission is evaluating whether stablecoins and other tokenized assets could be used as collateral in derivatives markets, potentially expanding their role in traditional finance.
Acting Chair Caroline Pham said the agency will “work closely with stakeholders” to shape the framework, with public feedback open until Oct. 20.
“The public has spoken: tokenized markets are here, and they are the future. For years I have said that collateral management is the ‘killer app’ for stablecoins in markets,” Pham said.
Earlier this week, Pham announced new members of the CFTC’s digital asset advisory group, including representatives from Uniswap Labs, Aptos Labs, BNY, Chainlink Labs and JPMorgan.
JPMorgan CEO Jamie Dimon told CNBC this week that he’s “not particularly worried” about stablecoins, indicating that he doesn’t see blockchain-based tokens as a threat to his bank’s core business model.
Institutional buyers will push Bitcoin price higher in Q4 – Michael Saylor
Despite recent volatility, Bitcoin’s bull market is set to continue in the fourth quarter as corporate treasuries and exchange-traded fund (ETF) inflows drive demand against limited supply, according to Strategy executive chairman Michael Saylor.
Speaking with CNBC, Saylor dismissed Bitcoin’s recent weakness, noting that “companies that are capitalizing on Bitcoin are buying even more than the natural supply being created by the miners.” Following the April 2024 halving, miners produce just 900 BTC per day.
Public companies collectively hold more than 1.03 million BTC, industry data shows. Strategy is by far the largest holder, with 639,835 BTC on its balance sheet.
For these companies, buying Bitcoin “actually improves their capital structure,” Saylor said.
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