Banking

Morgan Stanley CEO: ‘I don’t believe crypto is a trend’

Morgan Stanley Chief Executive Officer James Gorman is remaining considerate of cryptocurrencies.

Photo by Bloomberg Mercury

“I don’t think crypto is a fad. I don’t think it’s going to go away,” he stated on the bank’s third-quarter profits call with experts Thursday early morning. “I don’t know what the value of Bitcoin should or shouldn’t be. But these things aren’t going away, and the blockchain technology supporting it is obviously very real and powerful.”

That sets him up as a foil to competitor Jamie Dimon, who runs JPMorgan Chase & Co. “I personally think that Bitcoin is worthless,” Dimon stated today at the Institute of International Finance yearly subscription conference. He included that customers are “adults” which the company can provide “clean as possible access.”

Citigroup Inc. employer Jane Fraser struck a comparable note today: “We’re fairly cautious around crypto as a bank. We proceed with great caution on that one as to where the value is and isn’t,” she stated. “I am frankly much more excited about the technologies behind crypto than some of the products themselves.”

In September, Morgan Stanley stated Sheena Shah will lead a brand-new group looking into cryptocurrencies. On the profits call, Gorman included that the company isn’t straight trading crypto for retail customers, rather providing access to purchase crypto through different funds. “For us, honestly, it’s just not a huge part of the business demand from our clients. And that may evolve and we’ll evolve with it,” he stated. “We’re watchful of it, we’re respectful, and we’ll wait and see how the regulators handle it.”

— By Max Abelson with support from Nabila Ahmed and Zijia Song



Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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