Morgan Stanley is developing a crypto buying and selling service on its E*Trade platform. This marks the first major move by a large American bank into retail digital asset trading.
A New Chapter in U.S. Crypto Policy
The shift began immediately after President Trump’s inauguration in January. The president signed an executive order declaring the United States’ intention to lead in digital assets and fintech. On the same day, the Securities and Exchange Commission (SEC) repealed accounting guidance that had long hindered banks from working with crypto platforms. Later, the Federal Reserve and the Federal Deposit Insurance Corporation revoked their 2023 guidance on the risks of crypto-related banking.
These steps have reshaped how major financial institutions view the sector. According to Bloomberg, Morgan Stanley began discussing crypto trading through E*Trade early in the year. Currently, the broker offers access to crypto ETFs, options, and futures, but not direct token trading.
Partnerships, Timelines, and Launch Objectives
Morgan Stanley is exploring partnerships with one or more crypto companies. The launch could take place as early as 2025. Bloomberg sources noted that the decision to move forward with spot trading has already been made at the executive level, though no official date has been set.
Another potential competitor is Charles Schwab. CEO Rick Wurster told investors the company plans to introduce spot crypto trading within the next 12 months. He added that the regulatory “light is more green than yellow.”
Traditional Banking’s Response to the Rise of Robinhood and Coinbase
Until recently, major U.S. banks avoided direct involvement with crypto, citing high risks, regulatory uncertainty, and frequent hacks. Now that the political climate is shifting, the industry is rushing to catch up.
Morgan Stanley may challenge players like Robinhood and Coinbase. Robinhood has offered crypto trading for over five years — bringing in $626 million in 2024 alone, or 21% of its total revenue. In the first quarter of 2025, Robinhood’s profits doubled.
Bank of New York Mellon and JPMorgan have previously shown limited interest in blockchain. BNY Mellon received a “no objection” letter from the SEC to offer digital asset custody. JPMorgan created its internal JPM Coin and counts Coinbase among its clients. Despite public criticism of cryptocurrencies, JPMorgan CEO Jamie Dimon has said he supports investors’ right to use Bitcoin.
Following news of Morgan Stanley’s and Schwab’s crypto ambitions, Bitcoin briefly rose above $97,000 on May 1. Analysts attribute the price action to growing institutional engagement in crypto offerings for retail customers. Experts suggest this could mark a phase shift: large banks are no longer simply observing the crypto market — they are beginning to compete directly for investors.
