As part of his remarks at the World Economic Forum in Davos, Switzerland, Morgan Stanley’s newly appointed CEO, Ted Pick, signaled the banking giant’s potential move into cryptocurrency markets, emphasizing plans to work closely with U.S. regulators to explore expansion opportunities.
The news comes after the recent impact of Trump’s victory in the U.S. elections, which has not only shaken the crypto markets but also prompted major banking institutions to reconsider their stance on cryptocurrency offerings.
Earlier this week, Bank of America CEO Brian Moynihan indicated a willingness to embrace crypto, contingent on regulatory approval, suggesting that it could become another form of retail payment for customers of the second-largest U.S. bank by assets.
However, Pick also voiced caution about how Morgan Stanley plans to integrate crypto, saying, “For us, the equation is really around whether we, as a highly regulated financial institution, can act as transactors. We’ll be working with the Treasury and other regulators to figure out how we can offer that in a safe way.”
But it was only last Thursday, when President Trump issued an executive order declaring crypto a national priority, fulfilling several promises made to the crypto community. The order also pledges to protect “fair and open banking services for all law-abiding citizens and private sector entities alike.”
While the Biden administration had discouraged banks from servicing individuals or institutions linked to crypto, Trump has adopted an entirely different approach. He stated, “It is therefore the policy of my Administration to support the responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy.”
By emphasizing responsible growth and integration of digital assets, the order offers a clearer regulatory framework for banks to safely engage in crypto transactions. With this guidance, institutions like Morgan Stanley can navigate the regulatory landscape and act as responsible transactors.
Yet, it’s not just about the regulations; it’s about the infrastructure needed to make banks offering crypto truly possible, and Graphite Network, with its Bank Integration Initiative, could provide the solution.
Bitcoinist reached out to Graphite Network CTO Marko Ratkovic, who shared more about the vision they have for their Bank Integration Initiative:
“As banks like Morgan Stanley and Bank of America explore how they can engage with cryptocurrency markets, it’s essential to have the right infrastructure in place. While regulators work to establish a foundational framework on one hand, Graphite Network is building the technical base on the other. By enabling institutions to offer crypto services while maintaining security, compliance, and trust, Graphite Network ensures that crypto adoption progresses without compromising the integrity of traditional financial systems.”
Graphite Network provides the necessary infrastructure banks and other financial institutions need to connect smoothly to blockchain and Bank Integration Demo is the initiative to address all the challenges they may face while trying to integrate cryptocurrencies into their offering.
Graphite Network’s Features That Bridge Banks and Blockchain
- Verified User Accounts: Graphite Network’s ‘One User, One Account’ policy helps reduce the complexities banks might face when interacting with blockchain users. There’s a requirement for every user to activate their account by paying a small fee, which minimizes the creation of wallets used for suspicious activities.
- Privacy-Centric KYC System: Graphite Network’s ZK-Proof-based built-in KYC system allows banks to meet regulatory standards while offering privacy-conscious blockchain enthusiasts a secure experience. Users’ information, such as age or location, can be verified without exposing the data itself, making it a less invasive option compared to traditional methods.
- A Clear and Data-Driven Approach to Evaluating User Trustworthiness: Trust Score introduces another layer of security by assigning users a kind of a credibility rating, taking into account factors such as KYC level, account age, transaction history, interactions with flagged or suspicious accounts, whether the account itself has been flagged, and more. Banks can find this especially useful because it helps them quickly assess the risk of blockchain transactions, ensuring they only engage with trustworthy parties.
- Personalized Banking Solutions Through Reputation Data: Graphite Network enables banks to create smart contracts that integrate reputation-based metrics – a feature no other blockchain offers. For example, a bank could use these contracts to offer personalized savings account interest rates, providing higher rates to customers with verified stable income or long-term banking relationships, all while ensuring compliance with financial regulations.
- Purpose-Driven Tagged Addresses for Transparency: Graphite Network is working on a feature to introduce tagged addresses, which could be used for specific purposes, such as environmental project funding, ensuring funds are used appropriately. For example, if funds meant for reforestation projects are misused for unrelated activities, like luxury travel, the system will flag the issue.
The Only Blockchain That Opens Earning Opportunities for Integrators
What also makes Graphite Network stand out is its unique approach to rewarding node operators. Instead of enabling income generation for authorized nodes only, like most blockchains do, it also includes entry-point or transport nodes in its reward system. Fees are split 50/50: half goes to the transport node operator, and half to the block sealer. Authorized nodes earn 100% of fees for transactions without a transport node and 50% when one is involved.
“We’re moving beyond the old, centralized reward structures and creating an ecosystem where everyone, whether they’re building, securing, or transporting data, has a chance to directly earn from the blockchain. No other blockchain offers this. It’s not just about redistributing wealth; it’s about building a fairer, more inclusive system where everyone can share in the network’s growth,” Marko Ratkovic also shared.
@G and the Ticker System
Everything in the Graphite Network ecosystem, including the Bank Integration Demo Initiative, runs on the @G token. What makes this ticker special is how it clearly shows which network a token belongs to, for example, a stablecoin like USD@G. This helps avoid confusion and makes transactions more transparent and easy to trace, which is especially useful for banks.
Concrete regulations might still be in the works, but it’s clear that banks are becoming more open to integrating crypto into their systems. This shift signals not just progress but a significant step toward a future where traditional finance and blockchain can coexist seamlessly. Graphite Network is building the infrastructure to make this vision a reality. If initiatives like these continue, the future of crypto looks bright, with a stronger foundation for trust, transparency, and collaboration.
Image: atgraphite.com
