Key Highlights:
- Morgan Stanley (MS) is developing a cryptocurrency trading capability for E*Trade, aiming for a launch in 2026.
- The bank is looking into partnerships to facilitate spot trading of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
- Regulatory rollbacks under the Trump administration are driving U.S. banks, including Morgan Stanley, to revisit their involvement in the crypto sector.
Morgan Stanley is undertaking a significant step by leveraging its E*Trade platform to offer cryptocurrency trading, which would provide retail users direct access to digital currencies. This initiative is currently in preliminary phases and may be launched next year.
According to a Bloomberg report, the institution is considering collaborations with cryptocurrency-focused firms to establish the necessary infrastructure for spot trading.
This effort represents a major expansion of Morgan Stanley’s existing cryptocurrency offerings, which presently include exchange-traded funds (ETFs), options, and futures contracts for its higher-net-worth clientele. Internal discussions have escalated following Trump’s return to the presidency, which has facilitated regulatory rollbacks in the cryptocurrency landscape.
As Morgan Stanley rolls out crypto trading on E*Trade, it may intensify competition with established crypto-native platforms like Coinbase and Kraken.
Other financial institutions are also exploring similar opportunities; for instance, Charles Schwab has expressed interest in initiating spot trading, while SoFi is considering a significant re-entry into the crypto market after experiencing a substantial change in the U.S. crypto environment.
