Morgan Stanley Is Building a Crypto Trading Platform to Let Users Buy Bitcoin and Ethereum

Imagine being able to buy Bitcoin or Ethereum on the same app where you trade stocks, easily accessible to everyone. That's the vision Morgan Stanley is working on, tying into the broader narrative of traditional finance finally opening up to crypto.

The U.S. bank is planning to let users of its E-Trade platform buy and sell real cryptocurrencies, a move that could have major implications for the future of crypto investing.

Here's the scoop:

* Morgan Stanley is aiming to add the option for E-Trade users to buy and sell cryptocurrencies like Bitcoin and Ether.

* Right now, Morgan Stanley offers crypto-related products like ETFs and futures to its wealthier clients. But the plan is to introduce crypto trading to E-Trade users sometime next year.

* Instead of offering products that provide exposure to crypto, Morgan Stanley will be offering the actual coins, allowing for direct investment in Bitcoin, Ether, and possibly other cryptocurrencies.

* The bank is still in the process of building the system and may partner with one or more crypto companies to make this happen.

* Once the system is ready, it will enable people to trade cryptocurrencies in the same way they trade stocks—easily and all in one place.

This shift follows a massive change in U.S. crypto policy under President Donald Trump. His administration issued several executive orders to support digital assets, setting the stage for broader adoption.

Trump’s administration also began rolling back what were seen as harsh crypto regulations put in place by the Obama administration, and sent a clear message that crypto is welcome in the U.S. economy.

Moreover, regulatory bodies like the SEC, Fed, and FDIC began to visibly ease their stance on crypto firms, making it easier for banks to work with them.

These changes have encouraged big banks, which were once largely focused on traditional assets and had concerns about the risks involved in crypto, to begin exploring the digital asset space more actively.

This move by Morgan Stanley also marks the latest development in the ongoing competition among financial institutions for crypto users. Firms like Robinhood and Coinbase have already made significant inroads in the retail crypto space.

Now, with a trusted name like Morgan Stanley entering the picture and offering seamless integration with its existing stock trading app, it could attract users who might not have been interested in crypto before.

And Morgan Stanley won’t be the only one. Charles Schwab is also planning to offer crypto to retail investors next year, while SoFi is aiming to introduce it later this year.

These moves highlight the converging paths of traditional finance and the digital asset world, a shift that could open up new avenues for investing and financial management.