Morgan Stanley, one of the world’s largest investment banks, is reportedly set to introduce cryptocurrency trading on its consumer platform, E*Trade. According to a Bloomberg report citing sources familiar with the matter, the banking giant plans to allow customers to buy and sell cryptocurrencies starting next year, capitalizing on the recent deregulation efforts spearheaded by President Donald Trump. E*Trade To Allow Direct Crypto Investments This initiative marks a pivotal moment for Morgan Stanley as it seeks to enhance its offerings in the financial landscape. The firm is reportedly considering partnerships with established digital asset companies to develop the necessary infrastructure for trading virtual assets. ETrade, which was acquired by Morgan Stanley in 2020 for $13 billion, currently serves over 5 million users. While the platform has provided access to Bitcoin (BTC) and Ethereum (ETH) through exchange-traded funds (ETFs), direct investment in these digital currencies has not yet been available. The anticipated move to allow direct digital asset trading would position ETrade competitively against popular platforms such as Robinhood and Coinbase, which have already established strong footholds in the market, especially in the US. Traditional Finance’s Shift Towards Digital Assets The timing of Morgan Stanley’s announcement is particularly noteworthy, coinciding with a Federal Reserve (Fed) decision to rescind previous guidance that cautioned banks against engaging with cryptocurrencies. This shift signals a potential opening for financial institutions to explore innovative avenues in the crypto space, aligning with Trump’s pro-crypto stance. The president has made it clear that he aims to position the United States as “the crypto capital of the world,” reversing many of the regulatory measures that were implemented under the Biden Administration. Donald Trump’s second administration in the White House has also taken steps to establish a national Bitcoin and digital asset reserve and support the development of a clear regulatory framework for the evolving industry. The momentum in the traditional finance sector towards digital assets is growing. Notably, Fidelity Investments announced in March that it had begun testing its own stablecoin, while Bank of America’s CEO Brian Moynihan expressed interest in entering the stablecoin market pending the establishment of a regulatory framework. At the time of writing, the total crypto market capitalization is approaching $3 trillion for the first time in nearly two months. As such, the market’s leading crypto, BTC, has once again surged close to the $100,000 mark, currently trading at $96,865. This demonstrates not only the renewed interest in risk assets from institutions such as Morgan Stanley but also a broader sense of bullishness among retail investors who expect new record highs for the cryptocurrency this quarter. Featured image from DALL-E, chart from TradingView.com
