In a significant expansion of its digital assets strategy, Morgan Stanley is introducing cryptocurrency trading services through the E*Trade platform, offering it as a more economical alternative to traditional retail crypto platforms. A pilot program allows E*Trade users to trade at a fee of just 50 basis points on transaction value, as reported by Bloomberg. This rate undercuts major competitors like Coinbase, Robinhood, and Charles Schwab, whose fees range from 60 to 95 basis points.
Jed Finn, the Head of Wealth Management at Morgan Stanley, emphasized that this initiative is not merely about cost savings but represents a strategic shift in how clients access digital assets. The plan includes extending this service to all 8.6 million E*Trade customers within the year.
This move follows other recent crypto ventures by Morgan Stanley, such as launching a Bitcoin exchange-traded fund and planning similar products for ether and solana. Additionally, the bank is pursuing a national trust bank charter to enhance its capacity for directly holding digital assets.
According to Bloomberg sources, Morgan Stanley is considering features that allow conversion of cryptocurrencies into exchange-traded products without selling them off and is preparing for potential tokenized equity trading in the near future. These developments are poised to intensify competition in a sector where Coinbase reported $3.32 billion in consumer transaction revenue in 2025, and Robinhood generated nearly $1 billion from crypto-related activities.