Morgan Stanley launches crypto trading pilot as bank shakes up digital asset market from New York platform E*Trade expansion move

Morgan Stanley has officially expanded its involvement in the cryptocurrency market by launching a trading pilot through its E*Trade platform. This move signals a significant shift for the Wall Street giant, which is now directly competing with established crypto-focused platforms by offering transaction fees of 50 basis points. This pricing strategy is notably lower than competitors like Robinhood, Coinbase, and Charles Schwab. The initiative is being rolled out through E*Trade, a platform Morgan Stanley acquired in 2020. Initially, access will be limited to a smaller group of users, with plans to eventually expand to all 8.6 million E*Trade customers later this year. Executives view this as more than just a trading product; they see it as an effort to disrupt existing intermediaries within the financial system. The bank is also reportedly preparing additional features, such as technology to convert cryptocurrencies directly into exchange-traded products and support for tokenized equities, which is expected to be introduced in the second half of 2026. This expansion follows years of gradual involvement, including the launch of Bitcoin ETFs and applications for spot Ethereum and Solana ETFs. The timing is also supported by a changing regulatory environment in the United States. Morgan Stanley's entry into direct crypto trading is expected to intensify competition across the industry, potentially pressuring existing exchanges to rethink their pricing structures. It could also accelerate mainstream adoption by making digital assets accessible through a familiar institution. Increased institutional involvement may bring tighter compliance standards, deeper liquidity, and greater regulatory oversight to the crypto market.

(Source：Event Coverage)