In a significant move that signals growing mainstream acceptance of digital assets, Morgan Stanley is developing plans to introduce cryptocurrency trading capabilities on its E*Trade platform. This initiative, targeted for launch in 2026, would represent the most substantial effort yet by a major U.S. bank to provide retail investors with direct access to Bitcoin and other cryptocurrencies.
The Plan
According to reports from Bloomberg, the Wall Street giant is in the early stages of planning to add spot Bitcoin and cryptocurrency trading to its ETrade brokerage platform. The project would allow ETrade’s retail clients to buy and sell popular cryptocurrencies directly through their existing brokerage accounts, creating a seamless integration between traditional and digital asset classes.
Morgan Stanley executives expect to launch the service sometime next year, though specific details about the implementation remain in development. The bank is reportedly exploring partnerships with established cryptocurrency firms to develop the necessary trading infrastructure, although no specific partners have been finalized.
Market Context
The timing of Morgan Stanley’s initiative coincides with a bullish cryptocurrency market. Bitcoin is currently trading above $96,000, with the digital asset reaching its highest level since late February following the news. Other major cryptocurrencies are also showing strong performance, with Ethereum up nearly 5% and Solana rising more than 7.5% in recent trading.
This move by Morgan Stanley comes as the Trump administration has adopted a more favorable regulatory stance toward cryptocurrencies, encouraging major financial institutions to expand their digital asset offerings. President Donald Trump has publicly stated his intention to make the United States the “crypto capital of the planet,” signaling a shift in regulatory approach that has been welcomed by industry executives.
Competitive Landscape
If launched, Morgan Stanley’s E*Trade cryptocurrency service would put the bank in direct competition with crypto-native exchanges like Coinbase and Kraken. It could also affect other retail trading platforms such as Robinhood, whose shares fell 4% following the news.
Other traditional financial institutions are making similar moves. Charles Schwab has indicated interest in adding spot cryptocurrency trading, while SoFi is considering expanding its digital asset services after observing what it describes as a “fundamental shift” in the U.S. cryptocurrency landscape.
Expanding Services
Morgan Stanley already provides Bitcoin ETFs, futures, and options to its wealthy clients, but this would mark its first cryptocurrency offering targeted specifically at retail investors. The E*Trade platform could provide an accessible entry point for retail investors looking to gain direct exposure to cryptocurrencies through a regulated financial institution.
“This represents a significant evolution in how traditional banks approach digital assets,” noted a market analyst familiar with the situation. “Offering direct cryptocurrency trading through a platform like E*Trade removes a major barrier for everyday investors who might be intimidated by crypto-specific exchanges.”
Industry Implications
The entrance of major banks like Morgan Stanley into direct cryptocurrency trading services could accelerate mainstream adoption of digital assets. By providing these services through familiar, regulated platforms, these institutions may help address concerns about security and legitimacy that have previously deterred some traditional investors.
Morgan Stanley’s move also reflects the growing institutional adoption of Bitcoin and other cryptocurrencies. Spot Bitcoin ETFs continue to attract significant inflows, and regulatory clarity has improved under the current administration.
As major financial institutions continue to embrace cryptocurrencies, the line between traditional finance and digital assets appears to be blurring. For retail investors, this could mean greater access to cryptocurrencies through platforms they already trust and use.
Morgan Stanley has not yet officially confirmed the reports, and representatives did not immediately respond to requests for comment.
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