Morgan Stanley to Launch Crypto Trading on E*Trade

Highlights:

• Morgan Stanley plans to trade crypto via E*Trade with retail users in 2026.
• Crypto partnerships with established firms will support E*Trade’s trading feature.
• Regulatory shifts are pushing banks, including Morgan Stanley, to adopt crypto trading services.

Morgan Stanley intends to bring spot crypto trading to E*Trade by 2026. As reported by Bloomberg, the move will grant the retail investors access to popular assets like Bitcoin and Ethereum. The feature is still in early development but is already beginning to gain traction as the company looks to satisfy increasing client demand and appeal to positive U.S. regulations.

Following a change in government policies, internal discussions started in late 2024. President Trump’s administration has reversed several restrictions, encouraging more financial institutions to engage in digital assets. Therefore, expanding E*Trade’s offerings appeared to be a good opportunity for Morgan Stanley, with the executives convinced that spot crypto trading would be the next logical step.

JUST IN: 🇺🇸 $1.5 trillion Morgan Stanley to offer #Bitcoin and crypto trading to E-Trade clients. pic.twitter.com/8wWuJgovrs

— Bitcoin Magazine (@BitcoinMagazine) May 1, 2025

Currently, E*Trade’s users can access crypto only via ETFs, futures, and trust products, but the new feature will add crypto buying and selling of actual crypto assets. The firm will rely on established crypto firms to do the custody, fiat conversions, and infrastructure. Such partnerships will guarantee that the solution is secure and scalable.

Since 2020, E*Trade has been part of Morgan Stanley, which has more than 5 million retail clients. Adding crypto spot trading would make it competitive with firms like Robinhood and Coinbase that already offer crypto trading to retail users. Morgan Stanley is planning to compete with these platforms by tapping into its existing client base.

Regulatory Shifts Fuel the Push Toward Crypto

The crypto services have faced a more welcoming environment recently due to recent U.S. policy changes. The Federal Reserve and FDIC had even rolled back some prior guidance that had blocked banks from doing business with crypto firms. These updates opened new doors to traditional financial institutions, which gave Morgan Stanley the green light to proceed.

Accounting standards that made crypto custody tough for firms were also repealed by the SEC. Banks are more confident about entering the crypto market now with fewer regulatory roadblocks. Following the changes, discussions about expanding crypto services swiftly became formal planning, and Morgan Stanley was among the first to act.

Other financial institutions are likewise looking into integrating with cryptocurrencies. Crypto custody and crypto trading are already offered to retail users by Fidelity. Charles Schwab also has exposure with ETFs and is considering spot trading. This momentum across the industry reflects a broader acceptance of digital assets.

JUST IN: $7.13 trillion asset manager Charles Schwab to launch spot crypto trading within 12 months.

— Watcher.Guru (@WatcherGuru) May 1, 2025

Instead of limited exposure, the planned E*Trade feature will enable customers to take direct crypto access. The offering will sit alongside Morgan Stanley’s existing crypto offerings for high-net-worth clients, which include Bitcoin ETFs from Fidelity and BlackRock. The aim is to develop a single platform that brings together traditional and digital investments.

New Platform Supports Active Traders on E*Trade

A new platform, Power ETrade Pro, is also introduced by ETrade to run in parallel with the crypto initiative. The platform aims to serve active traders and features six screens with customizable tools. It also contains a desktop application for expanding beyond web and mobile access and will have a complete rollout by June 2025.

Power ETrade Pro will position itself against other advanced trading platforms, such as Schwab’s Thinkorswim and Robinhood’s Legend, aiming to draw in more involved retail traders. This platform, when combined with crypto trading, boosts ETrade’s offering as a whole. E*Trade is being set up by Morgan Stanley as a comprehensive hub for modern investors.

This new interface will have crypto trading integrated into it when it launches, so that users can trade digital assets using professional-grade tools. The combination intends to improve both beginner and experienced traders.