Morgan Stanley Secures Own Technology… “Concerns About Stablecoin Interest Payments, Potential Deposit Outflows”
Morgan Stanley is planning to offer Bitcoin (BTC) trading and custody services on its platform. They are also positively discussing the launch of Bitcoin-based revenue and loan services. At 8:42 a.m. on the 27th, Bitcoin’s domestic price was down 0.14% from the same time the previous day, recorded at 97.56 million won, according to Bithumb. Meanwhile, the international Bitcoin price stood at $67,523, a 0.49% decrease from the previous day’s value at CoinMarketCap.
According to Decrypt on the 26th, Morgan Stanley is building Bitcoin trading and custody services with its own technology and is considering launching Bitcoin-based loan services. At a conference held in Las Vegas, Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, mentioned that providing Bitcoin-based loan services is currently under discussion and is a natural step in their roadmap.
However, the specific timeline for the service launch has not been disclosed. Last September, Morgan Stanley announced plans to offer Bitcoin, Ethereum, and Solana trading through an application this year.
The U.S. Office of the Comptroller of the Currency (OCC) has blocked the circumvention of stablecoin interest payments. The OCC pointed out that if a close relationship exists between stablecoin issuers and virtual asset exchanges, there is a high probability of circumventing payments through exchanges. Previously, it was assumed that the prohibition on providing stablecoin yield under the Genius Act applied only to issuers and did not prevent exchanges like Coinbase from offering its rewards.
Angela Alsobrooks, a U.S. Senator, emphasized that paying interest on stablecoins could lead to a bank deposit outflow and needs careful consideration. She expressed concern over the similarity between stablecoin yields and traditional banking products, warning that the lack of regulatory safeguards could impact deposits and that the worries of local banks about stablecoin interest payments should be taken seriously.
American Bitcoin, a mining company associated with former President Donald Trump, recorded a valuation loss of $59 million in the fourth quarter last year from its Bitcoin holdings. Trump’s sons are jointly involved in the business, and the company currently holds over 6,000 Bitcoins. Due to recent Bitcoin price fluctuations, a large valuation loss was caused. However, this loss is an accounting valuation loss, not a realized loss from actual sales.