Morgan Stanley has officially entered the retail crypto trading market through its E*Trade platform, offering lower fees and expanding digital asset access to millions of customers.
Key Takeaways
- Morgan Stanley has launched crypto trading on its E*Trade platform in a pilot phase.
- The company plans to expand access to all 8.6 million E*Trade users later this year.
- Customers will initially be able to trade Bitcoin, Ethereum, and Solana.
- Morgan Stanley is charging a 50 basis point trading fee, lower than several major competitors.
What Happened?
Morgan Stanley is taking a major step into the cryptocurrency market by introducing crypto trading services through its E*Trade platform. The rollout is currently limited to a smaller group of users but is expected to reach the platform’s entire customer base later this year.
The move places the Wall Street banking giant in direct competition with crypto-focused exchanges and brokerage firms including Coinbase, Robinhood, and Charles Schwab. The company is attempting to stand out by offering lower trading fees and integrating crypto more closely into traditional financial services.
BREAKING: $7.9T Morgan Stanley is rolling out crypto trading, undercutting rivals with lower fees.
— Coin Bureau (@coinbureau) May 6, 2026
The Wall Street bank will charge E*Trade users a 0.50% transaction fee, undercutting Coinbase, Robinhood, and Charles Schwab.
The rollout is in testing now, and all 8.6 million… pic.twitter.com/7IdYp8v4DW
Morgan Stanley Expands Its Crypto Strategy
The latest launch marks another major milestone in Morgan Stanley’s growing involvement in digital assets. The bank already operates the MSBT spot Bitcoin ETF, which debuted on NYSE Arca in April with a competitive management fee of 0.14%.
According to data from SoSoValue, the ETF had accumulated more than $181 million in net inflows as of May 5. The lower fee structure appears to be part of Morgan Stanley’s broader strategy to gain market share quickly in the increasingly crowded crypto investment space.
Under the new E*Trade crypto service, users will initially have access to Bitcoin, Ether, and Solana trading. Bloomberg previously reported that Morgan Stanley partnered with digital asset infrastructure provider Zerohash to help power the initiative.
Lower Fees Could Pressure Rivals
Morgan Stanley plans to charge customers 50 basis points per crypto trade, undercutting many existing competitors in the market. Coinbase and Robinhood currently charge significantly higher rates on certain transactions, while Charles Schwab recently introduced spot Bitcoin and Ethereum trading with fees reported around 75 basis points.
The aggressive pricing strategy suggests Morgan Stanley is targeting cost conscious investors looking for exposure to digital assets through a familiar and regulated financial institution.
Jed Finn, the company’s head of wealth management, reportedly described the move as part of a larger shift toward convergence between traditional finance and decentralized finance. He added that the strategy goes beyond offering cheaper crypto trading and reflects changing market dynamics driven by regulation and institutional adoption.
Stablecoin and Custody Expansion Plans
Morgan Stanley’s crypto ambitions extend beyond simple trading access.
The company recently launched the Stablecoin Reserves Portfolio, known as MSNXX, in New York. The fund is designed for stablecoin issuers seeking reserve management solutions that align with standards proposed under the GENIUS Act.
The portfolio focuses on preserving liquidity and maintaining a stable net asset value by investing in cash, US Treasury securities, and overnight repurchase agreements.
At the same time, Morgan Stanley has reportedly applied for a national bank charter that would allow it to provide cryptocurrency custody services. The company is also planning to introduce tokenized stock trading options later this year as it broadens its blockchain based financial offerings.
Wall Street Continues Its Crypto Push
Morgan Stanley’s latest move highlights how traditional financial institutions are increasingly embracing crypto services as customer demand grows. Large banks and brokerage firms are now racing to integrate digital assets into mainstream investment products while competing on fees, accessibility, and regulatory compliance.
The expansion of crypto trading through established firms like Morgan Stanley could also help attract more traditional investors who may have previously avoided crypto native exchanges.
CoinLaw’s Takeaway
I believe Morgan Stanley’s entry into retail crypto trading is another strong signal that digital assets are becoming a permanent part of mainstream finance. In my experience, lower fees often become one of the biggest deciding factors for investors choosing a trading platform, especially during periods of market uncertainty.
I also found it important that Morgan Stanley is not limiting itself to basic crypto trading. The company is building a broader ecosystem around ETFs, custody, stablecoin reserves, and tokenized assets. That approach could give it a stronger long term position compared to platforms focused only on trading activity.
