Morgan Stanley is reportedly considering the introduction of cryptocurrency trading to its E-Trade online brokerage platform. This move comes as the firm anticipates a more favorable regulatory landscape in the United States under the incoming administration of President-elect Donald Trump. Trump has expressed plans to appoint leaders with pro-industry stances to key regulatory agencies, aiming to establish the U.S. as a leading hub for cryptocurrency.
E-Trade, acquired by Morgan Stanley in 2020, boasts approximately 5.2 million accounts holding assets worth around $360 billion. Should this plan materialize, E-Trade would join the ranks of major traditional brokerages like Robinhood, Fidelity, and Interactive Brokers in offering cryptocurrency trading. This development could present significant competition for existing platforms like Coinbase.
Morgan Stanley, a prominent asset manager with an advisory network managing about $3.75 trillion, has previously demonstrated an early interest in cryptocurrencies. In August, it authorized its financial advisers to recommend Bitcoin exchange-traded funds (ETFs), such as BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, to clients.
The burgeoning interest in cryptocurrency trading among traditional brokerages is evident, with firms like Robinhood reporting substantial increases in crypto trading volume and revenue. Such moves highlight the growing importance and profitability of digital currencies within the financial sector.
