Morgan Stanley Eyes Crypto Trading Integration for E-Trade Platform

Morgan Stanley, one of the largest asset managers globally, is reportedly considering adding cryptocurrency trading to its E-Trade platform, according to The Information.

The decision aligns with optimism surrounding President-elect Donald Trump’s plans to foster a crypto-friendly regulatory environment, aiming to establish the U.S. as a leader in the digital asset space.

If implemented, this move would position E-Trade among major traditional brokerages like Robinhood and Fidelity in offering crypto trading, challenging platforms such as Coinbase. E-Trade’s 5.2 million accounts currently manage $360 billion, making its potential entry into crypto a significant development for the industry.

Crypto trading has become a profitable sector for brokerages, with Robinhood reporting a 165% rise in crypto revenue year-over-year in Q3 2024. Coinbase also saw substantial gains, generating $1.2 billion in revenue, largely from crypto trading.

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Morgan Stanley has already shown early support for cryptocurrencies, authorizing its advisers in 2024 to recommend Bitcoin ETFs from BlackRock and Fidelity. With $3.75 trillion under management, Morgan Stanley’s potential crypto expansion signals growing acceptance of digital assets in mainstream finance.

Alexander Stefanov