Catenaa, Tuesday, January 7, 2025 – Morgan Stanley is reportedly exploring the launch of cryptocurrency trading services through its E-Trade platform, signaling a potential shake-up in the digital asset industry.
The move aligns with a pro-crypto stance promised by the second Trump administration, which has vowed to establish the US as a global crypto hub.
According to a report by The Information on January 2, Morgan Stanley’s decision could leverage a more favorable regulatory environment proposed under Trump’s leadership.
His administration aims to streamline oversight by shifting some regulatory powers from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), considered more crypto-friendly.
Morgan Stanley acquired E-Trade in 2020 for $13 billion, expanding its wealth management footprint. Adding crypto trading to E-Trade’s offerings would give the bank access to 5.2 million retail clients managing $360 billion in assets.
The move could challenge established players like Coinbase by integrating digital assets into a traditional brokerage platform.
The bank’s foray into crypto is not its first.
In 2024, Morgan Stanley permitted financial advisors to offer spot Bitcoin ETFs to select clients, becoming a pioneer among Wall Street banks.
If E-Trade adopts crypto trading, it could bridge the gap between institutional finance and retail crypto adoption, increasing market competition with streamlined services and competitive pricing.
Morgan Stanley has not commented on the development, leaving speculation about its impact on the broader market open.
