Morgan Stanley plans to introduce cryptocurrency trading on its e-trade platform by 2026, aiming to enhance crypto accessibility for retail investors. The bank is pursuing partnerships with established crypto companies and expects to benefit from recent regulatory changes under the Trump administration that ease banking responsibilities regarding crypto assets. Morgan Stanley’s move reflects a growing demand for crypto services among everyday investors, potentially increasing competition within the sector.
Morgan Stanley, the multinational investment banking behemoth, is gearing up to launch cryptocurrency trading on its e-trade platform by 2026. This move is poised to be a significant milestone for cryptocurrency adoption in the United States, as one of the major banks begins to offer digital assets such as Bitcoin and Ether to retail investors. It’s a game-changer for the industry, if they follow through on this plan.
Currently in the early planning phase, Morgan Stanley’s upcoming initiative involves exploring potential partnerships with established crypto firms to ensure secure trading. The bank aims to create a user-friendly environment that allows average individuals access to crypto trading with confidence. This, however, is just part of a larger strategy as they chart their course into the crypto landscape.
Reports indicate that the timing of this venture is strategically aligned with recent changes in the US cryptocurrency regulatory framework. Under former President Donald Trump, known for his somewhat positive stance on crypto, a significant SEC rule that complicated banks managing crypto assets safely was scrapped. This was a pivotal change.
In tandem with those adjustments, both the Federal Reserve and the FDIC have also eased restrictions, retracting warnings regarding crypto risks. Representing major banks, the Bank Policy Institute applauded these regulatory shifts, stating they pave the way for financial institutions to innovate and launch new crypto products and services.
Morgan Stanley had been considering expanding its cryptocurrency options since the latter part of last year. The firm currently offers its affluent clients crypto exchange-traded funds (ETFs) and futures, yet now it is looking to introduce “spot trading” options on its E-Trade platform. This would allow regular investors to buy and sell cryptocurrencies like Bitcoin directly — a step that could significantly democratise access to crypto.
The move seems driven by a clear indication of rising demand from everyday investors who want to tap into the crypto market. It might also spark increased competition against platforms like Robinhood, which reported making $626 million from crypto trading alone in 2024, and giant crypto exchange Coinbase.
This drive from Morgan Stanley towards crypto trading hints at a future where banks and financial services actively compete to offer digital currency options, potentially leading to a more crypto-friendly environment in the US market. Morgan Stanley has had its toes in the crypto water for several years now, recently even investing a hefty $188 million into a Bitcoin ETF, showcasing its serious commitment to the space.
