Morgan Stanley Considers Adding Cryptocurrency Trading to its E*TRADE Platform
In a significant development, Morgan Stanley, one of the world’s largest asset managers, is reportedly considering adding cryptocurrency trading to its E-Trade online brokerage platform. According to a January 2 report by The Information, this move would make E-Trade one of the biggest traditional retail brokerages to support crypto trading.
A Friendlier Regulatory Environment?
The wealth manager cited expectations of a friendlier crypto regulatory environment under United States President-elect Donald Trump as a key consideration. Trump has promised to appoint industry-friendly leaders to key regulatory agencies and make the US "the world’s crypto capital." This shift in regulatory stance could potentially pave the way for more widespread adoption of cryptocurrency trading by traditional financial institutions.
E-Trade’s Massive Customer Base
Morgan Stanley bought E-Trade in 2020, acquiring a massive customer base with approximately 5.2 million accounts collectively holding around $360 billion. If E-Trade were to introduce crypto trading, it could potentially bring millions of investors into the cryptocurrency market.
Competition and Innovation
The addition of crypto trading on E-Trade’s platform would create meaningful competition for incumbent platforms such as Coinbase. Other traditional retail brokerages already offering crypto trading include Robinhood, Fidelity, and Interactive Brokers. Charles Schwab reportedly plans to add crypto trading this year, according to Bloomberg.
Limited Token Options
Available tokens on these platforms are generally more limited than on crypto-native centralized exchanges like Coinbase. However, this may change as more traditional brokerages enter the market, potentially leading to increased competition and innovation in the space.
Crypto Trading’s Lucrative Business
Crypto trading has been a lucrative business for online brokerages. Robinhood’s Q3 2024 results show that crypto trading volume and revenue soared by 112% and 165% year-on-year, respectively, reaching $14.4 billion and $61 million.
A Growing Market
The growing popularity of cryptocurrency trading is evident in the increasing revenues generated by online brokerages offering these services. In June, Robinhood agreed to acquire the Bitstamp crypto exchange in a $200 million deal that would enable it to serve institutional investors in the United States. Meanwhile, incumbent Coinbase clocked revenues of $1.2 billion in the third quarter of 2024, primarily from its crypto trading businesses.
Morgan Stanley’s Early Mover Advantage
Morgan Stanley has been an early mover in crypto compared with other traditional wealth managers. In August, Morgan Stanley authorized its 15,000 financial advisors to start recommending Bitcoin (BTC) exchange-traded funds (ETFs) to clients. As one of the largest wealth managers in the US, Morgan Stanley’s advisory network manages some $3.75 trillion, including $1 trillion in self-directed client accounts.
A Growing Trend
The trend towards traditional financial institutions embracing cryptocurrency trading is clear. With more brokerages entering the market and regulatory hurdles being addressed, it’s likely that we’ll see increased adoption of crypto trading by mainstream investors.
Related Articles
- 2025 will be crypto’s best year ever — Steno Research: A report by Steno Research predicts a significant increase in cryptocurrency adoption and growth in 2025.
- Brokerages embrace crypto: Several traditional retail brokerages are already offering crypto trading, including Robinhood, Fidelity, and Interactive Brokers.
Explore More Articles Like This
- Bitcoin payments are being undermined by centralized stablecoins: A magazine article explores the impact of centralized stablecoins on Bitcoin payments.
- Magazine: Bitcoin payments are being undermined by centralized stablecoins: Read more about the challenges facing Bitcoin payments in a rapidly changing cryptocurrency landscape.
Subscribe to Our Crypto Biz Newsletter
Stay up-to-date with the latest business trends and developments in blockchain and crypto. Gain valuable insights to navigate the market and spot financial opportunities. Delivered every Thursday.
By subscribing, you agree to our Terms of Service and Privacy Policy.
Contact Us
Get in touch with us for more information or to share your thoughts on the latest developments in cryptocurrency trading.
