Morgan Stanley is developing a plan to introduce cryptocurrency trading on its E*Trade platform, marking a significant shift in how major US banks approach crypto or digital assets.
This strategic move, tentatively scheduled for launch next year, would allow everyday customers to buy and sell popular tokens like Bitcoin and Ethereum. The bank is exploring partnerships with established crypto firms to build the necessary infrastructure for this service.
Wall Street Giants Explore Crypto
Meanwhile, competitor Charles Schwab has announced plans to implement crypto trading as early as this year, accelerating the timeline on their previously disclosed strategy.
These developments come amid a dramatic transformation in US cryptocurrency policy. US President Donald Trump’s administration has begun dismantling regulatory barriers that previously hindered mainstream financial institutions from entering the digital asset space.
Trump, who campaigned on making America the “crypto capital of the planet,” has attracted support from crypto enthusiasts and prompted major banks to reconsider their historically cautious approach toward the volatile sector.
New Competitive Crypto Landscape
Morgan Stanley’s crypto initiative gained momentum in late 2024, building upon E*Trade’s existing offerings of crypto ETFs, ETF options, and futures. The decision to add spot trading represents the next logical step in their digital asset strategy. Similarly, traditional banks that once avoided cryptocurrencies are now reconsidering their stance as regulatory hurdles diminish.
The shift became evident when federal regulators withdrew previous guidance that had discouraged banks from engaging with crypto businesses.
The Bank Policy Institute celebrated this change, noting it empowers financial institutions to “better serve their customers safely and invest in innovative new products and services.” This regulatory evolution has created a more favorable environment for traditional financial players to enter the space.
This remarkable turnaround reflects a broader institutional acceptance of digital assets that was nearly unthinkable just a few years ago. JPMorgan Chase, whose CEO Jamie Dimon famously called Bitcoin “worthless” and “a fraud,” has since embraced blockchain technology with initiatives like JPM Coin while establishing relationships with exchanges including Coinbase.
The emerging crypto landscape promises intense competition between established financial institutions and digital-native platforms. Robinhood, which has offered cryptocurrency trading for over five years, generated 21% of its total net revenue from crypto in the previous year.
As Trump’s policy changes stimulated increased trading activity, Robinhood’s first-quarter profits more than doubled. Now, with Morgan Stanley and Charles Schwab entering the arena, and SoFi Technologies considering reintroducing crypto investing, the competitive environment is poised to intensify significantly.
When asked about regulatory signals, Schwab CEO Rick Wurster described them as “pretty green,” highlighting the dramatic shift in the regulatory climate that is enabling this financial transformation. As former Morgan Stanley CEO James Gorman presciently noted back in 2017, Bitcoin has proven to be “more than just a fad,” and now Wall Street is fully embracing the cryptocurrency revolution.