Morgan Stanley Plans to Launch Crypto Trading on E*Trade, Escalating Competition for Crypto Exchanges
Morgan Stanley (MS) is preparing to offer cryptocurrency trading on its E*Trade platform, signaling a significant step by a major U.S. bank to provide retail investors with direct access to digital assets.
While still in the early stages, the initiative is expected to launch next year. According to Bloomberg, the bank is considering collaborations with crypto-native companies to help establish the necessary infrastructure for spot trading.
This move would substantially expand Morgan Stanley’s crypto offerings, which currently cater to its wealthier clients with products like exchange-traded funds (ETFs), options, and futures contracts. The push to bring crypto trading to E*Trade is reportedly gaining momentum following Donald Trump’s return to the White House last year, which led to regulatory rollbacks in the U.S. crypto space.
If successful, Morgan Stanley’s entry into crypto trading could increase competition for established crypto exchanges such as Coinbase and Kraken, which dominate the retail sector.
Other financial institutions are following suit, with Charles Schwab signaling interest in adding spot trading, while SoFi is exploring a major expansion into the cryptocurrency market, citing a “fundamental shift” in the U.S. regulatory landscape.
