Morgan Stanley Considers Adding Cryptocurrency Trading to E-Trade Platform
According to a recent report by The Information, Morgan Stanley, one of the world’s largest asset managers, is contemplating the addition of cryptocurrency trading to its E-Trade online brokerage platform. This move would make E-Trade one of the biggest traditional retail brokerages to support crypto trading, potentially creating meaningful competition for incumbent platforms.
A Friendlier Regulatory Environment Under Trump
Morgan Stanley has reportedly cited expectations of a more favorable regulatory environment under President-elect Donald Trump as a key consideration in its plans. Trump has promised to appoint industry-friendly leaders to key regulatory agencies and make the US "the world’s crypto capital." This shift in policy could provide a more conducive environment for mainstream adoption of cryptocurrencies.
The Potential Impact on the Market
If Morgan Stanley were to add cryptocurrency trading to E-Trade, it would have significant implications for the market. With over 5.2 million accounts holding approximately $360 billion collectively, E-Trade has the potential to bring crypto to millions of investors who may not have previously considered investing in cryptocurrencies.
Other Traditional Retail Brokerages Embracing Crypto
E-Trade is not the only traditional retail brokerage considering cryptocurrency trading. Other notable players in the industry include Robinhood, Fidelity, and Interactive Brokers. Charles Schwab has also reportedly planned to add crypto trading this year, according to Bloomberg.
Limited Token Options on Traditional Brokerages
While these traditional brokerages are offering cryptocurrency trading, the selection of tokens available is generally more limited compared to centralized exchanges like Coinbase. However, with increasing demand and adoption, it’s likely that we’ll see a wider range of tokens become available on these platforms in the future.
Crypto Trading Revenue Soars for Online Brokerages
The data suggests that crypto trading has been a lucrative business for online brokerages. Robinhood’s Q3 2024 results show that crypto trading volume and revenue soared by 112% and 165% year-on-year, respectively, reaching $14.4 billion and $61 million.
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