Morgan Stanley predicts stablecoin deposits to appear in traditional banks

According to a report published by Sheena Shah, Morgan Stanley’s crypto strategist, traditional banks understand the perspectives of digital currencies and are going to capitalize on the growing interest.

Sheena focused on stablecoins that solve the core problem of the crypto market. Such assets are pegged to fiat currencies, metals, or other instruments; this is why their volatility is close to zero. The community understands stablecoins as protective assets. The MS strategist outlines the explosive growth of the stablecoin market. Volumes have skyrocketed by 688% within a year (from $20 B to $137.7 B).

Stablecoins let holders get up to 5% APR on crypto deposits and unlock access to the DeFi market. This is why financial regulators and governments need to take some measures, reacting to the growing popularity of “stable crypto assets.” Sheena assumes the possibility of stablecoin deposits to appear in traditional banks.

Furthermore, the strategist highlights the growing interest of institutional investors in digital assets. Altcoins are somehow more attractive than Bitcoin, as those assets disclose more opportunities for investors.

Morgan Stanley created the crypto-analysis department in September, and Sheena Shah has headed the newly-established division.