Morgan Stanley’s E*TRADE reportedly considering cryptocurrency trading amid regulatory shift

Multinational investment bank and financial services firm Morgan Stanley is reportedly considering plans to launch cryptocurrency trading services through its E*TRADE unit amid expected more favorable regulation under the new Trump administration.

This was reported by The Information. which claims that plans are still in the exploratory stage.

Morgan Stanley acquired E*TRADE for $13 billion in 2020. The service currently offers indirect access to cryptocurrencies through investment products such as futures, exchange-traded funds and digital asset stocks. Some of the offerings currently available on E*TRADE include the Grayscale Bitcoin Trust and the ProShares Bitcoin Strategy ETF.

If E*TRADE continues to provide direct cryptocurrency trading services, it will position the firm as one of the largest traditional financial institutions to enter the digital asset trading market. But this is a slight case of déjà vu, as this is not the first E*TRADE company to consider cryptocurrency trading. Prior to its acquisition by Morgan Stanley, the then independent financial corporation ETrade Financial Corp. also considered offering cryptocurrency support. in 2018but the rules and his possible acquisition interfered.

E*TRADE’s decision, some seven years later, to re-enter the cryptocurrency trading market comes as a presidential transition promises a more favorable regulatory environment for digital assets. As noted Crypto briefingThe new Trump administration has taken a pro-crypto stance, aiming to position the United States as a leader in the cryptocurrency market.

E*TRADE’s renewed interest in offering direct cryptocurrency trading services can also be considered a strategic response not only to expected regulatory support, but also to the growing demand for digital assets among investors. By opening up their books and services to cryptocurrencies, E*TRADE, and therefore parent company Morgan Stanley, are strengthening their competitive position against other traditional firms that do not offer cryptocurrency services.

If Morgan Stanley enters the cryptocurrency business through E*TRADE, the offering will also pose a major challenge to existing leading US players such as Coinbase Global Inc. and Robinhood Markets Inc. While competition is great for the consumer, it is not so good for existing players, especially when the new competitor is owned by one of the world’s largest banks with a market capitalization of $201 billion.

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