Catenaa, Wednesday, May 13, 2026-Morgan Stanley has started piloting spot cryptocurrency trading on its ETrade retail brokerage platform, marking one of the largest moves yet by a major US bank into direct crypto trading services for retail investors.
The pilot program is already live for selected users, with broader rollout planned later this year across ETrade’s 8.6 million client accounts, according to a Bloomberg report published Wednesday.
Morgan Stanley is charging clients a 50-basis-point fee on the dollar value of each crypto trade.
Jed Finn said the initiative forms part of a larger strategy aimed at reshaping access to digital assets within traditional finance.
Bloomberg ETF analyst Eric Balchunas said Morgan Stanley’s pricing undercuts rival brokerage firms including Charles Schwab, which currently charges about 75 basis points for similar crypto services.
Balchunas noted that spot bitcoin ETFs still offer lower overall trading costs, with some funds trading near 2 basis points, though direct ownership removes ongoing fund management fees.
Crypto Expansion
Morgan Stanley had largely remained cautious on cryptocurrency exposure until late 2025, when it began allowing aggressive wealth management portfolios to hold up to 4% crypto allocations.
The bank later launched a spot bitcoin ETF called MSBT, which reportedly attracted more than $205 million in assets under management within weeks of launch.
The expansion reflects rising institutional demand for regulated digital asset investment products as banks compete with crypto-native exchanges and fintech firms.
Future Services
Morgan Stanley is also preparing additional crypto-linked services, including plans to let clients convert cryptocurrencies directly into exchange-traded products without first liquidating digital assets.
The bank reportedly intends to launch tokenized equity trading for institutional clients later this year.
Last month, Morgan Stanley’s investment division also introduced a stablecoin reserve fund aligned with provisions under the proposed GENIUS Act. The fund maintains a stable $1 value through holdings in cash and short-term US Treasury instruments.
The move places Morgan Stanley among a growing group of major financial institutions expanding crypto operations as US regulators develop clearer rules for digital asset markets.
Traditional banks have accelerated crypto adoption efforts following the approval of spot bitcoin ETFs and broader institutional acceptance of blockchain-based financial products.
Morgan Stanley’s Crypto Evolution
Morgan Stanley’s entry into spot cryptocurrency trading on ETrade caps years of cautious expansion into digital assets, driven by regulatory shifts and client demand. The bank, managing $1.6 trillion in assets, historically focused on institutional crypto services like prime brokerage for Bitcoin futures since 2021. Retail access remained limited until spot Bitcoin ETF approvals in January 2024 unlocked broader opportunities.
In late 2024, CEO Ted Pick signaled openness to crypto allocations in wealth management amid Bitcoin’s surge past $100,000. By mid-2025, high-net-worth clients gained 2-4% portfolio exposure to BTC and ETH via approved ETPs. The MSBT spot Bitcoin ETF launch drew rapid inflows, proving demand for branded products.
This ETrade pilot, with its 50 bps fee edge over Schwab’s 75 bps, targets 8.6 million retail accounts. It follows JPMorgan’s 2025 crypto custody push and Goldman Sachs’ tokenized fund pilots. Stablecoin reserves under the GENIUS Act align with Basel III rules favoring Treasuries.
The shift reflects Wall Street’s convergence with crypto exchanges, fueled by clearer CFTC/SEC guidelines post-2025. Tokenized equities signal further blockchain integration for efficiency. Morgan Stanley positions as a regulated gateway, blending tradition with digital innovation.
