Key Takeaways
- Morgan Stanley plans to add crypto trading to its E-Trade platform next year.
- The firm may partner with established crypto firms to facilitate trading of Bitcoin and Ether on E-Trade.
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Morgan Stanley, which oversees $1.7 trillion in client assets, is developing a plan to enable trading of Bitcoin and other crypto assets on its E-Trade platform, according to a new report from Bloomberg.
The company is targeting a launch window within the next calendar year, though a precise date has not yet been determined. The project is still in early development, the report stated.
The latest development comes after Morgan Stanley’s E-Trade reportedly explored the launch of crypto trading services in January, anticipating a supportive regulatory environment under the Trump administration.
What began as quiet exploration in January has now progressed into active planning, policy-fueled acceleration, and competitive positioning for a 2025 launch of spot crypto trading on E-Trade — likely making Morgan Stanley the first major US bank to enter the retail crypto market at scale.
The top-tier investment bank and wealth management firm is also mulling partnerships with established crypto firms to facilitate its plan, the report noted.
Currently, E-Trade offers indirect crypto exposure through various investment products but does not provide direct crypto trading.
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.
Morgan Stanley doubles down on its crypto bet
Morgan Stanley was early on betting on a US crypto policy shift.
A few months after the debut of US-listed spot Bitcoin ETFs, the bank 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 BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund — two of the most prominent products.
That shift happened in August 2024, around three months ahead of the US presidential election. Even then, Morgan Stanley moved cautiously, and the bank continues to maintain this measured approach as it now explores direct spot trading via E-Trade.
The regulatory landscape has indeed shifted dramatically since President Trump took office.
In recent months, the Federal Reserve and Federal Deposit Insurance Corp. rescinded Biden-era guidance that had discouraged banks from engaging with crypto companies. Meanwhile, the SEC repealed restrictive accounting rules that many crypto firms said had deterred partnerships with traditional financial institutions.
Internal discussions at Morgan Stanley began accelerating in late 2024, as executives reevaluated their stance on the sector. Offering spot crypto trading, according to the bank’s executives, was the “ideal next step” to deepen its presence in the digital asset market.
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