Morgan Stanley Reportedly Considers Offering Crypto Trading Via E-Trade

Investment bank and wealth manager Morgan Stanley is reportedly exploring the possible launch of cryptocurrency trading on its E-Trade platform, potentially challenging Robinhood in the process.

The bank is looking into the possible service addition on E-Trade customers, citing expectations of better regulations for digital assets and crypto under a new administration, The Information reported Thursday.

The report added that the bank is looking to kickoff crypto trading with major crypto assets such as market cap leaders Bitcoin and Ethereum.

Morgan Stanley did not immediately respond to International Business Times' request for comment.

What to Know About the E-Trade Platform

Investment brokerage and e-trading platform E-Trade operates as a subsidiary of Morgan Stanley. Through the platform, consumers can choose from a variety of investments such as options, stocks, mutual funds, exchange-traded funds (ETFs), and more.

It also offers assistance with retirement accounts and provides market analysis and free equity research from Morgan Stanley.

How Will Such a Move Impact Crypto?

The entry of traditional financial institutions such as Morgan Stanley into the crypto realm is deemed as a major driver toward broader adoption. Since the majority of financial consumers lean toward regulated and veteran providers, traditional firms can help get more people onboard in crypto.

If the bank pushes through with the reported plan, Morgan Stanley can become a major challenger to fintech giant Robinhood and even traditional retail brokerages offering the same solutions such as Fidelity.

The biggest impact could be on leading cryptocurrency exchanges like Coinbase, Bybit, OKX, and the likes, especially if Morgan Stanley's solutions prove to have an edge over existing digital asset trading platforms.

Before offering crypto trading via E-Trade, the bank needs to secure regulatory approval from the U.S. central bank because Morgan Stanley is classified as a bank holding company.

Upon approval, Morgan Stanley's new offer could seriously challenge other providers given its regulated status.

Trump's Crypto Promises Ushering In Traditional Firms?

It appears that President-elect Donald Trump's promises to Bitcoiners and the broader crypto space is ringing loud in traditional finance circles.

He promised to block the Securities and Exchange Commission's (SEC) seeming overreach in regulating digital assets and crypto, specifically calling out the "weaponization" of regulations in crypto. He also vowed to make the United States the global leader in crypto.

For one, Trump appointed the first ever crypto czar in the country, David Sacks. He said Sacks will guide policy around artificial intelligence and crypto.

The business mogul-turned-president has also announced the establishment of a crypto council composed of "luminaries" from the crypto space, although some small crypto holders aren't sure Trump made the right choice in his council chief pick.

It appears Morgan Stanley had been observing the political landscape and its impact on the crypto space. With a "pro-crypto" president in the White House, the wealth management firm may now be more confident in diving further into the crypto space.