Morgan Stanley is preparing to launch cryptocurrency trading on E*Trade by 2026, aiming to give retail users direct access. The initiative follows regulatory rollbacks under the Trump administration and may enhance competition against major crypto exchanges like Coinbase and Kraken. Other banks are also exploring similar moves into cryptocurrency trading.
Morgan Stanley is reportedly planning to introduce cryptocurrency trading on its E*Trade platform, set for a potential launch in 2026. This initiative is significant because it represents a major U.S. bank’s move to give everyday users access to cryptocurrencies directly. According to a Bloomberg report, the bank is currently exploring partnerships with firms that are already established in the crypto space to aid in enabling spot trading, making this a pivotal development in the industry.
The effort marks a substantial expansion of Morgan Stanley’s existing crypto offerings, which mainly consist of exchange-traded funds (ETFs), options, and futures that cater to wealthier clientele. Interest in this venture reportedly surged following the regulatory rollbacks that have occurred since Donald Trump returned to the presidency. Such changes have led to a re-evaluation of strategies by various U.S. banks when it comes to the cryptocurrency market.
If Morgan Stanley successfully implements these trading features on E*Trade, it could pose increased competition to established crypto exchanges such as Coinbase and Kraken. The landscape for cryptocurrency is rapidly evolving, and other financial institutions are not sitting idly by either. Charles Schwab has indicated interest in adding its own spot trading options, while SoFi is also considering a significant entry into the cryptocurrency sector, citing a notable shift in the U.S. market.
As these developments unfold, it will be interesting to see how traditional financial institutions adapt to emerging trends in cryptocurrency trading and what impact this will have on the broader market. For Morgan Stanley, this move could be a game changer, potentially reshaping how retail investors interact with digital currencies in the coming years.
