Morgan Stanley is laying the groundwork to enable crypto spot trading on its E*Trade platform, aiming for a full rollout in 2026, according to a Bloomberg report. If successful, the move would mark the first time a major U.S. bank has offered retail customers native spot trading of crypto assets, such as Bitcoin and Ether.
Crypto Trading for E*Trade Clients
The initiative is still in its infancy, with executives exploring partnerships with established crypto firms to manage custody, execution, and the necessary infrastructure for crypto trading. The plan aims to expand Morgan Stanley’s existing crypto offerings, which are currently limited to exchange-traded funds, options, and futures, primarily designed for high-net-worth clients.
Notably, internal discussions within the firm reportedly gained traction in late 2024. The demand from retail clients for direct access to crypto assets surpassed interest in indirect products, such as ETFs and futures.
The bank seeks to lower barriers for everyday investors while maintaining the regulatory safeguards and user experience standards of traditional finance. In line with this, it will integrate real-time market data, trading functionality, and on-chain settlement options into the E*Trade interface.
Nonetheless, Bloomberg noted that a spokesperson for Morgan Stanley declined to comment on the specifics of the partnerships or the precise launch date.
U.S. Banks Free to Explore Crypto Offerings
The latest Morgan Stanley development comes amid a rapidly shifting U.S. policy toward crypto since the Trump administration. For example, in April 2025, the Federal Reserve officially withdrew supervisory letters that had previously discouraged bank involvement in crypto activities and streamlined the approval process for new services.
As a result, Morgan Stanley and other banks can now navigate a more straightforward compliance pathway. If U.S. banks start offering crypto-related services, including retail spot trading, it will intensify competition with American-based, crypto-native platforms like Coinbase and Kraken, and challenge brokerages like Robinhood.
Meanwhile, Eric Trump criticized the traditional banking system, branding it “broken, slow, and expensive,” and warned that banks risk extinction within a decade if they fail to adopt crypto and blockchain technology. Additionally, he asserted that banks have weaponized their services against ordinary Americans, particularly those aligned with his political movement.
