Morgan Stanley rolls out crypto trading on E*Trade for select clients

Morgan Stanley has taken another step into digital assets by launching spot cryptocurrency trading on its E*Trade platform. The feature is initially available to a small group of clients, with plans to roll it out to all 8.6 million users later this year. The bank is also preparing to offer tokenised equities trading for institutional investors in the second half of 2023. The move follows the bank’s broader push into crypto services. In October 2022, it introduced the Morgan Stanley Spot Bitcoin ETF (MSBT), which has since gathered over $205 million in assets. Earlier this year, the firm launched a stablecoin reserves fund, maintaining a fixed $1 net asset value by investing in short-term cash and U.S. Treasury instruments.

The current pilot allows select E*Trade clients to trade cryptocurrencies directly. Each transaction carries a 50 basis point fee. Jed Finn, head of wealth management, described the strategy as 'disintermediating the disintermediators,' suggesting a long-term vision beyond cost savings.

Later in 2023, the bank plans to let clients convert crypto holdings into shares of exchange-traded products without liquidating their positions. This builds on its existing work in digital asset integration, reinforcing its position as the sixth-largest U.S. asset manager by funds under management. The expansion of crypto services marks a significant shift for Morgan Stanley’s retail and institutional clients. With tokenised equities trading on the horizon, the bank is positioning itself at the forefront of digital asset adoption. The rollout to all E*Trade users will further test demand for integrated crypto solutions.