Morgan Stanley is considering adding cryptocurrency trading to its E*TRADE platform to offer services to its 5.2 million retail customers.
A New Era of Digital Asset Integration
The decision to offer cryptocurrency trading services could position E*TRADE as one of the largest traditional financial platforms to enter the crypto space. Acquired by Morgan Stanley in 2020 for $13 billion, E*TRADE has established itself as a leading platform for stocks, mutual funds, ETFs, and other investment products. Morgan Stanley has already taken steps to integrate cryptocurrency into its wealth management services, authorizing 15,000 of its financial advisers to recommend Bitcoin ETFs to clients.
Why Cryptocurrency Trading?
The cryptocurrency market has surged in recent years, with Bitcoin and Ethereum leading the charge. As of Jan. 3, 2025, the total market valuation of cryptocurrencies exceeds $3.4 trillion. Digital assets have attracted both institutional and retail investors as a hedge against inflation and fiat currency devaluation.
The Shift in Regulation and Market Demand
E*TRADE’s interest in expanding into crypto trading reportedly reflects two primary factors: a potential shift in the U.S. regulatory framework and increasing market demand. Under the Trump administration, there are expectations for more favorable crypto regulations, which could lower the barriers for financial institutions to enter the space. Additionally, retail investors are becoming increasingly interested in cryptocurrency as a viable investment option.
Morgan Stanley’s exploration into this market comes as part of a broader strategy to position itself as a leader in the cryptocurrency space, potentially bringing in a new wave of investors.
