Morgan Stanley is working on a plan to add cryptocurrency trading to its E*Trade platform, marking a significant move by a major US bank to help everyday customers buy into the asset class. Executives envision launching the service sometime next year, according to people familiar with the matter. The firm is considering partnering with established crypto firms to set up the mechanics for the brokerage’s clients to buy and sell popular tokens, including Bitcoin and Ether.
Rival Charles Schwab Corp. aims to proceed as early as this year with a previously disclosed plan for crypto trading. These moves come amid a dramatic shift in US policy toward virtual assets. During his campaign, President Donald Trump promoted his own digital collectibles and drew support from crypto enthusiasts, leading to a rethinking of banks' approach to the volatile sector.
Inside Morgan Stanley, discussions on cryptocurrency expansion began gaining momentum last year. E*Trade already provides access to crypto exchange-traded funds, ETF options, and futures. The firm aims to engage with regulators on safely expanding in the asset class.
Big US banks have largely stayed on the sidelines with crypto due to concerns about guarding assets prone to hacks and scams. JPMorgan Chase & Co. CEO Jamie Dimon, a notable skeptic who once called Bitcoin “worthless,” has nevertheless recognized the potential value of blockchain technology. His firm interacts with exchanges like Coinbase as clients.
Regulatory changes post-2017 under Trump made it easier for banks to engage with crypto. Recent moves by institutions like the Federal Reserve have further facilitated banking sector involvement. Morgan Stanley’s former CEO, James Gorman, expressed early interest in crypto.
For Morgan Stanley, crypto trading at E*Trade would increase competition with incumbents like Robinhood, which has allowed crypto trading for years. As regulators deregulated, trading surged and boosted firms' profits. SoFi Technologies Inc. is considering reintroducing crypto investing to its platform due to the evolving regulatory environment.
Schwab CEO Rick Wurster expects to introduce crypto trading this year, with regulatory indications showing a positive outlook for expansion.
This article has been published in bloomberg.com via Yahoo News.
