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Morgan Stanley Plans Spot Crypto Trading on E*Trade by 2025

Coin WorldThursday, May 1, 2025 8:27 pm ET

1min read

Morgan Stanley is actively developing plans to introduce spot cryptocurrency trading on its E*Trade platform, marking a significant move by a major U.S. bank into the digital asset space. The initiative, which is expected to launch within the next calendar year, aims to provide clients with direct access to buying and selling cryptocurrencies such as Bitcoin and Ethereum. This development comes amidst a shifting regulatory environment in the U.S., which has shown increasing support for digital assets.

The project, currently in its early stages, represents a deeper push by morgan stanley into the crypto market. The bank, which oversees $1.7 trillion in client assets, has been exploring partnerships with established crypto firms to facilitate this integration. This move is part of a broader strategy to challenge key players in the crypto trading sector, such as Robinhood and coinbase, by offering a more comprehensive suite of digital asset services.

Morgan Stanley's interest in crypto trading is not new. The bank began allowing its financial advisors to recommend Bitcoin ETF products to high-net-worth clients in August 2024, following the debut of US-listed spot Bitcoin ETFs. This cautious approach has continued as the bank now explores direct spot trading via E*Trade. The initiative, once executed, would position E*Trade among the major traditional financial institutions moving into the digital asset trading sector, potentially challenging key players like Robinhood and Coinbase.

The decision to offer spot crypto trading on E*Trade is driven by several factors, including the growing demand for digital assets among retail investors and the evolving regulatory landscape. The bank's move is also seen as a response to the competitive pressures in the financial services industry, where other major players are already offering crypto trading services. By entering the retail crypto market at scale, Morgan Stanley aims to leverage its extensive client base and robust trading infrastructure to capture a significant share of the growing digital asset market.

The launch of spot crypto trading on E*Trade is expected to provide clients with a seamless and secure trading experience, leveraging the platform's existing infrastructure and regulatory compliance framework. This move is part of Morgan Stanley's broader strategy to stay ahead of the curve in the rapidly evolving financial landscape, where digital assets are increasingly becoming a mainstream investment option. The bank's measured approach to crypto trading reflects its commitment to ensuring regulatory compliance and protecting client interests, while also positioning itself as a leader in the digital asset space.

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