Morgan Stanley’s crypto subsidiary E-Trade is preparing to offer crypto trading, The information reported January 2, citing two people familiar with the plans.
According to the report, the lender’s decision is driven by its anticipation of a more favorable regulatory environment under the new administration of President-elect Donald Trump.
However, before launching such a service, E-Trade would need approval from major regulators, including the Federal Reserve. Its parent company is a bank holding company, so it falls under central bank supervision.
Morgan Stanley acquired E-Trade in 2020. At the time of its acquisition, it had more than 5.2 million accounts and $360 billion in assets under management.
Morgan Stanley’s entry into crypto trading would bring considerable capital and legitimacy to the space, potentially encouraging greater participation from individual and institutional investors.
Notably, Charles Schwab, the largest publicly traded brokerage house in the United States, also expressed interest in crypto trading.
In November, CEO Rick Wurster indicated that Schwab would explore the possibility if regulatory conditions improved. Like E-Trade, Schwab would need approval from the Federal Reserve because of its banking operations.
If these companies obtain the necessary approvals, the crypto market could see a wave of new entrants and increased competition, challenging established players and bridging the gap between traditional and digital finance.
Crypto optimism in the United States
The potential launch of cryptocurrency trading services by traditional finance giants highlights widespread interest in the sector now that regulations may become friendlier.
As Trump appoints crypto-friendly names to his team, such as Involving established institutions could reshape the competitive landscape while attracting more capital to the market, according to new U.S. Securities and Exchange Commission Chairman Paul Atkins.
In addition to traditional financial companies joining the crypto market, industry players hope for regulatory moves on Trump’s first day. Decrees aimed at facilitating access to banking services are part of the expectations.
Additionally, new crypto-related products could hit the markets, further increasing institutional interest. Bloomberg exchange-traded fund (ETF) analysts Eric Balchunas and James Seyffart expect a wave of approvals for new crypto ETFs this year.
