Morgan Stanley (NYSE: MS) is exploring adding digital asset capabilities to its E-Trade platform, industry publication The Information revealed this week.
The potential expansion would leverage E-Trade’s substantial customer base of 5.2 million account holders, who collectively manage $360 billion in assets. Morgan Stanley, which brought E-Trade under its umbrella in 2020, appears to be timing this strategic move with anticipated regulatory changes under the incoming Trump administration.
E-Trade potentially joins an expanding roster of traditional brokerages entering the space. Market data suggests lucrative opportunities in retail crypto trading — Robinhood’s latest quarterly report showed crypto trading volumes surging to $14.4 billion, generating $61 million in revenue.
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This wouldn’t be Morgan Stanley’s first venture into digital assets. In August, the firm authorized its 15,000 financial advisers to recommend Bitcoin exchange-traded funds to clients. The advisory network manages approximately $3.75 trillion, including $1 trillion in self-directed client accounts, and has been recommending BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
The landscape of retail crypto trading appears increasingly competitive. While established crypto exchange Coinbase reported $1.2 billion in third-quarter revenue, traditional brokerages like Fidelity and Interactive Brokers have already carved out their space in the market. Charles Schwab (NYSE: SCHW) is reportedly preparing to join the fray this year.
Trump’s campaign promise to establish the United States as “the world’s crypto capital” through industry-friendly appointments appears to be influencing Wall Street’s growing embrace of digital assets, though traditional platforms typically maintain a more conservative selection of tradeable tokens compared to crypto-native exchanges.
Robinhood’s recent $200 million acquisition of crypto exchange Bitstamp further illustrates traditional finance’s deepening engagement with digital assets, as the company seeks to expand its institutional offerings.
Information for this story was found via and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
