Morgan Stanley’s E-Trade Considers Offering Direct Cryptocurrency Trading Services
Morgan Stanley’s E-Trade division is evaluating the introduction of direct cryptocurrency trading services, reflecting anticipated pro-crypto regulatory changes under Donald Trump’s administration. This initiative is in early planning stages and indicates a shift away from E-Trade's current model, which only provides indirect exposure to digital assets through investment products.
Morgan Stanley has historically supported Bitcoin, particularly by promoting cryptocurrency ETFs earlier this year. The firm has invested nearly $300 million into these products by October, leveraging its team of 15,000 brokers to advocate for them. If E-Trade moves forward with direct trading, it may significantly enhance Morgan Stanley's standing in the digital asset sector, aligning with expectations of a favorable regulatory environment due to Trump's pro-crypto approach.
The crypto market's growth and increasing institutional adoption make it an attractive area for major financial players. Direct trading by E-Trade could allow Morgan Stanley to compete with existing platforms, catering to the growing interest from retail and institutional investors.
Trump's presidency is anticipated to prioritize clearer regulations for the crypto sector, providing incentives for firms like Morgan Stanley to prepare their infrastructure accordingly. Should favorable regulations emerge, E-Trade could rapidly implement its direct crypto trading services.
However, no final decision has been made, and progress hinges on regulatory developments and internal assessments at Morgan Stanley. Currently, the firm is focused on evaluating options and preparing for potential shifts in the digital asset landscape.