Wall Street giant Morgan Stanley has officially entered the direct retail cryptocurrency trading market by launching crypto trading services on its E*Trade platform.
The move marks a significant expansion of the bank’s digital asset strategy and positions Morgan Stanley as a stronger competitor in the fast-growing retail crypto trading space.
According to reports, the new service is currently being rolled out through a pilot programme available to a limited number of users. A broader launch is expected later in 2026, when all 8.6 million E*Trade clients are projected to gain access to the platform’s cryptocurrency trading services.
Morgan Stanley is reportedly charging clients 50 basis points, or 0.5 percent, per transaction. This pricing places the bank below several major competitors, intensifying fee competition across the crypto brokerage market.
The lower transaction fee gives Morgan Stanley a pricing advantage over rivals such as Coinbase, Charles Schwab, and Robinhood Markets. Schwab recently launched spot trading for major cryptocurrencies with a 75-basis-point fee, while Coinbase’s retail trading costs can exceed 0.5 percent depending on transaction type, payment method, and user tier.
Although Robinhood promotes commission-free trading, users typically pay through spreads that often range between 35 and 95 basis points. Meanwhile, Fidelity’s separate crypto offering reportedly charges approximately 1 percent per trade.
The pilot launch currently supports trading for three major digital assets: Bitcoin, Ether, and Solana. These are also the same assets Morgan Stanley has targeted through exchange-traded fund filings, signaling a broader multi-product digital asset strategy.
Industry analyst Eric Balchunas noted that Morgan Stanley’s aggressive pricing could trigger a broader fee war among traditional financial institutions entering crypto markets.
He suggested competitors may be forced to lower fees further, potentially making crypto trading significantly cheaper across major platforms.
Behind the scenes, Morgan Stanley’s crypto trading infrastructure is being supported by Zero Hash, a Chicago-based digital asset infrastructure provider responsible for custody, liquidity, and settlement services.
Morgan Stanley reportedly holds a stake in the company. Zero Hash has also attracted major industry attention following reports that Mastercard recently moved to acquire the firm in a deal reportedly valued near $2 billion.
The brokerage launch follows Morgan Stanley’s recent expansion into crypto investment products. The bank launched its spot Bitcoin ETF, MSBT, in April with a 0.14 percent expense ratio, making it one of the lowest-cost Bitcoin ETFs currently available in the U.S. market.
It has also filed for Ether and Solana ETFs, further strengthening its digital asset offerings. One of Morgan Stanley’s biggest advantages is distribution. Through E*Trade and its extensive wealth management ecosystem, the bank has access to a massive client base and advisor network.
Its approximately 16,000 in-house financial advisors oversee around $9.3 trillion in client assets, providing multiple channels to promote crypto-related services. The latest move underscores how traditional financial institutions are accelerating their push into digital assets as crypto becomes increasingly mainstream.
By combining competitive pricing, large-scale distribution, and established financial infrastructure, Morgan Stanley is positioning itself as a serious player in retail crypto trading.
For crypto-native exchanges, the entry of major banks like Morgan Stanley represents growing competition from institutions with deep capital, regulatory experience, and massive customer reach.
As traditional finance and digital assets continue to converge, Morgan Stanley’s E*Trade crypto launch could mark another important step in the mainstream adoption of cryptocurrency investing.
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