Morgan Stanley, the asset management giant commonly known as Morgan Stanley, is evaluating whether to incorporate cryptocurrency trading capabilities into its brokerage platform E-Trade. According to reports, the main consideration for this plan is due to Trump’s previous commitment to create a regulatory environment friendly to cryptocurrency.
Optimistic about the encryption-friendly policies brought about by the Trump administration
According to foreign media reports, US President-elect Donald Trump has previously promised to appoint leaders of regulatory agencies that are friendly to the encryption industry and is committed to making the United States the "global cryptocurrency capital." Against this background, Morgan Stanley is optimistic about the future regulatory environment and believes that now is a good time to include cryptocurrencies in E-Trade.
If this plan is successfully implemented, E-Trade may become one of the leaders among traditional brokerages supporting cryptocurrency trading, creating significant competitive pressure on well-known exchanges like Coinbase.
Morgan Stanley's market influence
Founded in 1982, traditional brokerage E-Trade was acquired by Morgan Stanley in 2020 and currently has 5.2 million users, with total user assets valued at approximately $360 billion. As one of the most prestigious asset management giants in the U.S., Morgan Stanley currently has client assets totaling up to $3.75 trillion, including $1 trillion in self-directed investment accounts.
This is not Morgan Stanley's first foray into the cryptocurrency market. In August 2024, Morgan Stanley authorized its 15,000 financial advisors to recommend Bitcoin-related ETFs to clients, such as BlackRock's IBIT and Fidelity's FBTC, which are viewed as 'blue-chip' level Bitcoin ETFs.
(Over 400 13F filings hold BlackRock's IBIT, and Morgan Stanley holds nearly $270 million in GBTC)
Traditional brokerages are gradually embracing cryptocurrency trading, which may pose challenges to mainstream exchanges.
In fact, traditional brokerages have already begun to lay out plans for cryptocurrency trading. Currently, online brokers Robinhood, Fidelity, and Interactive Brokers all support cryptocurrency trading, and it is reported that Charles Schwab also plans to launch related services this year.
Charles Schwab CEO Rick Wurster revealed in an interview that they are expected to launch cryptocurrency-related services.
The types of tradable cryptocurrencies on the aforementioned platforms are usually fewer than those on major exchanges like Coinbase, but as market demand grows, cryptocurrency-related trading businesses also bring considerable revenue to these platforms. According to Robinhood's revenue report for the third quarter of 2024, cryptocurrency trading volume increased by 112% year-on-year, reaching $14.4 billion, with related revenue hitting $61 million, a growth rate of 165%.
Additionally, Robinhood announced in June 2024 that it would acquire the cryptocurrency exchange Bitstamp for $200 million, helping Robinhood further expand U.S. institutional investors' entry into the cryptocurrency market. If Morgan Stanley's brokerage E-Trade successfully launches cryptocurrency trading features, it could pose significant challenges to mainstream cryptocurrency exchanges like Coinbase and Binance.
(Robinhood's revenue continues to hit new highs, planning to buy back $1 billion in stock)
This article states that Morgan Stanley is expected to include cryptocurrency trading under its brokerage E-Trade, with the Trump phenomenon being a major reason for the plan, first reported by Chain News ABMedia.
