Investment banking behemoth Morgan Stanley is apparently preparing to launch cryptocurrency trading on its retail investment platform, E*Trade, in a major move that would indicate Wall Street’s growing interest in digital assets. The ruling highlights the banking industry’s increasing embrace of cryptocurrency, particularly in light of President Donald Trump’s administration’s extensive deregulatory initiatives.
Morgan Stanley plans to allow E*Trade users to purchase and sell cryptocurrencies as early as next year, according to a Bloomberg article that cited people with knowledge of the situation. The bank is reportedly looking into joint ventures with well-known cryptocurrency companies to support the infrastructure required for these services.
Morgan Stanley declined to comment when approached by Fortune, while E*Trade has not yet responded to media inquiries.
Through exchange-traded funds (ETFs), E*Trade, which Morgan Stanley purchased for $13 billion in 2020, presently enables over five million individuals to invest in Bitcoin and Ethereum. It does not, however, currently provide direct access to cryptocurrency holdings; this possible amendment seeks to address that.
This development’s timing roughly corresponds with recent changes in Washington regulations. The U.S. Federal Reserve this week revoked earlier 2022 and 2023 recommendations that advised banks to exercise caution when interacting with cryptocurrencies. Additionally, the Fed said it would assess whether new guidelines are required to encourage innovation in digital finance.
President Trump, during his current term, has taken a markedly pro-crypto stance. In his first 100 days, he reversed multiple enforcement actions initiated during the Biden administration, backed the establishment of a national Bitcoin reserve, and advocated for a formal regulatory framework to govern digital assets. His administration has made it clear that it sees the United States as a future hub for cryptocurrency development and trading.
This deregulatory climate has opened the door for legacy financial institutions to explore the crypto space with renewed vigor. Fidelity Investments, for example, began testing its own stablecoin in March, and Bank of America’s CEO Brian Moynihan voiced interest in entering the stablecoin market once federal regulations are more clearly defined.
Should Morgan Stanley proceed with its plans, it would enter a competitive arena already dominated by crypto-native platforms such as Coinbase and Robinhood. However, with its substantial resources, vast customer base, and growing regulatory clarity, the bank could quickly become a formidable player in the digital asset trading space.
Morgan Stanley’s entry into direct cryptocurrency trading could be a turning point for widespread adoption as traditional banking and the cryptocurrency sector merge. It would also further indicate Wall Street’s embrace of the blockchain era.
