Morgan Stanley to Add Crypto Trading to E-Trade
Morgan Stanley, managing $1.7 trillion in client assets, is planning to integrate Bitcoin and other cryptocurrency trading onto its E-Trade platform. This was revealed in a recent Bloomberg report.
The launch is anticipated within the next year, although a specific date remains unconfirmed. The project is currently in its early stages of development.
E-Trade's Crypto Journey
This announcement follows E-Trade's earlier exploration of crypto trading services in January 2025, suggesting a proactive response to a shifting regulatory landscape. This transition, fueled by supportive regulatory changes under the Trump administration, positions E-Trade as a potential leader in the retail crypto market.
Morgan Stanley is considering partnerships with established cryptocurrency firms to facilitate seamless trading.
Currently, E-Trade offers indirect crypto exposure through investments, but direct trading is absent. This new initiative places E-Trade alongside other traditional financial institutions entering the digital asset market, creating competition with existing players like Robinhood and Coinbase.
Morgan Stanley's Crypto Strategy
Morgan Stanley's proactive approach to the crypto market began months after US-listed spot Bitcoin ETFs launched. They permitted financial advisors to recommend Bitcoin ETF products (including funds from BlackRock and Fidelity) to high-net-worth clients.
This strategic shift, occurring in August 2024, demonstrated early anticipation of changes in US crypto policy. Their measured approach continues as they cautiously move into direct spot trading.
The regulatory shift under President Trump is significant. The Federal Reserve and FDIC have reversed Biden-era guidance discouraging bank engagement with crypto firms. Furthermore, the SEC's repeal of restrictive accounting rules has cleared the way for increased collaboration between traditional finance and the crypto industry. This spurred internal discussions at Morgan Stanley, leading to the decision to offer spot crypto trading.
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