Morgan Stanley CEO says crypto currency is not a fad

The CEO of Morgan Stanley James Gorman says crypto isn't a big part of the bank's business but, he admits, it's more than just a passing trend

The chief executive officer (CEO) of global investment bank Morgan Stanley James Gorman says that crypto currency, including bitcoin, is not a fad. Noting that they are not going to go away, he told CNBC. He said: We’re watchful of it, we’re respectful, and we’ll wait and see how the regulators handle it.

He added: The blockchain technology supporting it is obviously very real and powerful.

Gorman says crypto isn't a big part of the bank's business but, he admits, it's more than just a passing trend.

Gorman made the comments on the company's third-quarter earnings call after an equity analyst asked how the bank planned to engage with clients regarding digital assets.

In response, the CEO said Morgan Stanley isn't directly trading crypto currencies for retail clients - unlike some of its competitors - but it gives them access to buy digital assets through funds.

He is suggesting that there may be something more than fleeting to digital assets beyond the hype and bluster that sometimes surrounds it.

Gorman said of his observations of client behaviour, of late: Nobody’s putting 10% of their portfolio into it. It’s not a core part of their diversification strategy. It is an option that they are looking at, he told the business network.

Morgan Stanley became one of the first banks to offer access to crypto among its qualified clientele earlier this year.

The global investment bank launched a dedicated crypto currency research team in September, led by Sheena Shah, the firm’s crypto analyst.

Gorman notes that traditional markets, the 10-year Treasury note, the Dow Jones Industrial Average, the S&P 500 index, and the Nasdaq Composite Index still represent the go-to investment areas for average investors.