Morgan Stanley is set to introduce spot trading for cryptocurrencies like Bitcoin on its E*Trade platform for retail clients by next year. The bank is in the early stages of this initiative and is exploring partnerships for infrastructure. This would mark Morgan Stanley’s first crypto service aimed at everyday users, expanding beyond their previous offerings to wealthy clients.
Morgan Stanley, a prominent bank with assets under management reaching $1.7 trillion, is gearing up to facilitate spot crypto trading for its retail clients using the E*Trade brokerage platform. According to a report from Bloomberg, the firm aims to enable users to buy and sell major cryptocurrencies like Bitcoin directly through their brokerage accounts.
However, the plans are still somewhat nascent, as they’ve yet to reach the final stages of development. The expectation is to roll out this trading service by sometime next year. Current efforts are focused on forging partnerships with established crypto firms to establish the necessary infrastructure for these services. Notably, discussions about the service have been under consideration within Morgan Stanley since late last year, suggesting a progressive move into the crypto sector.
In January, Morgan Stanley began contemplating a dedicated E*Trade cryptocurrency marketplace, prompted by an anticipated regulatory shift in the U.S., which seemed friendly under the Trump administration. Interestingly, the bank aims for this crypto trading initiative to take shape by 2026, but early indications show they’re actively pursuing the idea now.
Previously, Morgan Stanley developed considerable exposure to cryptocurrencies by providing its affluent clients with access to various crypto-related investment products, including futures contracts and ETFs. In August, the bank permitted its financial advisers to promote Bitcoin ETFs, specifically emphasising those from BlackRock and Fidelity Investments. The bank’s filings later revealed an impressive stake of around $272 million in Bitcoin ETF shares, showing substantial engagement with the market.
While wealthy clients have had these crypto options available, this upcoming initiative marks the first time Morgan Stanley would offer crypto trading opportunities specifically targeting the everyday E*Trade user, allowing them to potentially compete with well-established crypto exchanges such as Kraken and Coinbase.
Other major financial entities, like Charles Schwab, also seem to be eyeing the crypto trading service market. Some institutions have already ventured with these services in varying capacities worldwide—such as Spain’s second-largest bank, which recently acquired a license to extend crypto trading and custody services to its retail customers.
Current regulatory atmospheres appear to encourage Morgan Stanley’s crypto pursuits, with the U.S. government progressively adopting more pro-cryptocurrency regulations since the Trump era. Recently, the Federal Reserve eliminated about 95% of prior anti-crypto measures, thus allowing banks to engage in crypto activities without the need for prior consent.
Additionally, there are mandates for agencies like the SEC to work towards creating transparent regulations for the crypto industry. Amid these evolving regulations, Morgan Stanley is making steady progress towards launching its crypto trading services on E*Trade, although, at this time, there has been no official confirmation from the bank on these developments.
Disclaimer: This content serves as information only and is not financial advice. The viewpoints expressed are those of the author and do not represent The Crypto Basic. Readers are strongly urged to conduct their due diligence before making investment choices. The Crypto Basic holds no liability for any financial losses.
