Morgan Stanley is considering introducing crypto trading on the E*TRADE platform to expand its client base of 5.2 million retail users.
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. In August 2024, Morgan Stanley authorized 15,000 of its financial advisors 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 January 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. Companies like MicroStrategy have purchased significant amounts of Bitcoin, driving up their stock values.
Competition for Existing Crypto Platforms
The potential launch of cryptocurrency trading on E*TRADE will pose significant competition to established players such as Coinbase. With Morgan Stanley’s reputation and regulatory backing, the platform would have a considerable edge in attracting customers looking for a more traditional investment platform with the added benefit of cryptocurrency services. Companies like Robinhood, Fidelity, and Interactive Brokers have already integrated crypto trading into their offerings, and Charles Schwab is expected to do the same in 2025.
Morgan Stanley aims to enter the crypto space, reflecting the growing demand for digital assets and regulatory changes. This may lead to greater liquidity for digital assets and increased investor confidence.
