- Morgan Stanley brings spot crypto trading to E*Trade for retail investors.
- E*Trade expansion puts Morgan Stanley in competition with Coinbase and Kraken.
Morgan Stanley is getting ready to launch spot cryptocurrency trading on its E*Trade platform. The bank undergoes significant changes by expanding its crypto services beyond its high-net-worth clientele. According to Bloomberg, the majority of Morgan Stanley’s crypto services remained inaccessible to typical retail investors until now. The bank is about to introduce a crucial transformation.
E*Trade to Offer Direct Crypto Trading Under Morgan Stanley
Among their existing offerings, Morgan Stanley permits its selected clients to use exchange-traded funds (ETFs) and futures and options trading for Bitcoin and Ethereum. The bank plans to let E*Trade users directly acquire and dispose of cryptocurrencies. The means to directly trade cryptocurrencies is referred to as spot crypto trading.
The upcoming expansion will have Morgan Stanley challenge prominent crypto exchanges Coinbase and Kraken. These platforms currently serve a customer base of millions of retail users. Morgan Stanley intends to expand its user base on its platform by introducing comparable trading services.
The U.S. government expresses evolving views concerning digital assets, while this fundamental choice emerges. From the start of 2025, the Trump administration began to dismantle numerous stringent crypto regulations. The U.S. Securities and Exchange Commission (SEC) took SAB 121 off the books, which previously made crypto holding difficult for banks. The Federal Reserve, together with the FDIC, eliminated previous documents that dissuaded banks from partnering with cryptocurrency businesses.
Extending these reforms gives banking institutions enhanced independence to access the crypto business market. The collective discussions within Morgan Stanley started progressing faster during late 2024. Bank executives identified spot crypto trading as the optimal chance to advance their digital asset offerings.
In addition, the financial services company Morgan Stanley is looking into developing business ties with cryptographic organizations. The digital asset companies currently operate with both existing digital asset technology and related experience. The joint effort between Morgan Stanley allows the company to speed up the development of appropriate infrastructure to deliver improved services to its users.
E*Trade to Open Spot Crypto Trading for Retail Investors
Financial institutions of comparable size to Morgan Stanley are actively moving toward new directions in the market. Fidelity Investments embarked on stablecoin testing at the beginning of March 2025. Network International’s stablecoin program maintains a watch for the U.S. government’s cryptocurrency rulemaking before it enter the market.
Traditional financial institutions show increased interest because President Donald Trump supports cryptocurrency policies. During his first 100 days as president, he introduced multiple executive decisions that helped digital assets. Trump initiated changes to outdated laws and advocated for a Bitcoin national reserve, and established a structured regulatory structure during his early months as president.
Lastly, Morgan Stanley’s upcoming launch of crypto trading for retail clients represents a crucial milestone in the industry. Traditional banks are opening up to digital assets through relaxed regulatory policies as well as growing market demand. Spot crypto trading implementation on E*Trade platform will enable a vast number of everyday investors to enter the rapidly expanding digital marketplace.
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