Morgan Stanley Plans Spot Crypto Trading on E*Trade by 2025
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 cryptocurrency integration into traditional financial services.
The project, currently in its early stages, represents a deeper push by morgan stanley into the digital asset sector. The bank, which oversees $1.7 trillion in client assets, has been exploring the launch of crypto trading services since January. The initial exploration has now progressed into active planning and policy-fueled acceleration, with the goal of positioning Morgan Stanley as a leader in the retail crypto market by 2025. This move would make Morgan Stanley the first major U.S. bank to enter the retail crypto market at scale, potentially challenging key players like Robinhood and Coinbase.
To facilitate this integration, Morgan Stanley is considering partnerships with established crypto firms. This strategic move would enable the bank to leverage existing expertise and infrastructure in the digital asset space, ensuring a smooth and efficient rollout of crypto trading services on the E*Trade platform. Currently, E*Trade offers indirect crypto exposure through various investment products but does not provide direct crypto trading. The introduction of spot crypto trading would position E*Trade among the major traditional financial institutions moving into the digital asset trading sector.
Morgan Stanley's interest in cryptocurrency is not new. The bank has been betting on a U.S. crypto policy shift for some time. In August 2024, a few months after the debut of U.S.-listed spot Bitcoin ETFs, Morgan Stanley began allowing its financial advisors to recommend Bitcoin ETF products to high-net-worth clients who met specific eligibility criteria. The offerings included funds from prominent products like BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund. This cautious approach has continued as the bank now explores direct spot trading via E*Trade, reflecting its measured strategy in navigating the evolving regulatory landscape.
