Morgan Stanley Expands Crypto Trading Through E*Trade Platform

Morgan Stanley is expanding its digital asset strategy by introducing crypto trading capabilities on its E*Trade platform, positioning the offering as a lower-cost alternative to existing retail crypto brokerage services as competition intensifies between traditional banks and crypto-native trading platforms.

According to Bloomberg, the bank is currently running a pilot program that charges E*Trade users a fee of 50 basis points per crypto transaction. The pricing places the service below fee ranges typically associated with competitors including Coinbase, Robinhood, and Charles Schwab, which reportedly charge between 60 and 95 basis points.

Morgan Stanley Expands Retail Crypto Access

Jed Finn said the initiative is intended to go beyond lower-cost crypto access, describing it as part of a broader effort to “disintermediate the disintermediators” in digital asset markets.

Morgan Stanley plans to extend the crypto trading service to all 8.6 million E*Trade customers later this year, marking one of the largest retail crypto expansions by a major U.S. financial institution.

The rollout builds on a broader institutional digital asset strategy that accelerated following U.S. approval of spot Bitcoin exchange-traded funds in January 2024. Morgan Stanley was among the major banks that expanded Bitcoin ETF access to eligible wealth-management clients after the U.S. Securities and Exchange Commission approved spot Bitcoin ETFs, helping move crypto exposure further into traditional brokerage and advisory channels.

Lower Fees Increase Pressure on Crypto Platforms

Morgan Stanley’s pricing strategy could intensify pressure on crypto-native trading platforms that continue to rely heavily on retail transaction revenue.

Retail crypto trading remains a major revenue source for established crypto platforms. Coinbase reported $3.32 billion in consumer transaction revenue in 2025, while Robinhood disclosed nearly $1 billion in crypto-related revenue during the same period, underscoring the commercial significance of retail digital asset activity.

The bank’s move into lower-cost crypto execution could increase competition across the sector, particularly if traditional financial institutions leverage existing brokerage relationships and regulated investment products to consolidate digital asset services within broader wealth management ecosystems.

The development also reflects a broader shift in financial markets as banks increasingly position digital assets as an integrated financial service rather than a separate speculative asset class.

Custody and Tokenization Strategy Expands

Morgan Stanley has also expanded efforts on the infrastructure side of digital assets. The bank has applied for a national trust bank charter that would enable direct custody of digital assets, aligning with a wider industry trend among banks seeking greater control over crypto settlement and safekeeping infrastructure.

The custody push comes as U.S. regulators continue refining oversight frameworks for digital assets. Both the Office of the Comptroller of the Currency digital asset guidance hub and the FDIC crypto asset resource center have expanded guidance for banks engaging with crypto-related activities, including custody and settlement services.

Sources cited by Bloomberg also indicated that Morgan Stanley is evaluating services allowing clients to convert crypto holdings into exchange-traded products without requiring direct asset sales. The bank is additionally exploring infrastructure for tokenized equity trading later this year, reflecting broader institutional interest in tokenized financial markets.

Morgan Stanley’s latest crypto initiatives come as U.S. lawmakers continue discussions around stablecoin oversight and digital asset market structure legislation, developments that could provide clearer regulatory pathways for banks increasing exposure to digital asset services.