Morgan Stanley Completes E*TRADE Crypto Spot Trading Rollout

What happened

E*TRADE from Morgan Stanley completed the full rollout of spot crypto trading, enabling eligible clients to buy, sell and hold Bitcoin, Ethereum and Solana directly within their existing brokerage accounts. The service is powered by infrastructure provider zerohash, with digital assets held in a linked non-brokerage account and displayed alongside traditional investments like stocks. Trading is priced at 50 basis points per trade, which positions E*TRADE competitively with other retail platforms including Coinbase, Schwab and Robinhood. The full launch follows an initial pilot program introduced in May, after Morgan Stanley first announced plans to offer spot crypto trading last year. Transfer functionality is expected to launch later in 2025.

Why it matters

The launch extends digital asset access to nearly 9 million E*TRADE clients, bringing crypto trading into Morgan Stanley's established wealth management ecosystem without requiring clients to open separate exchange accounts. By integrating crypto alongside traditional investments, Morgan Stanley addresses key client preferences: 32% of respondents in a Morgan Stanley survey ranked trust in an established company as a top factor when selecting a crypto platform, while 26% prioritised viewing digital assets alongside traditional holdings. The 50 basis point commission structure makes E*TRADE competitive on price with both traditional brokerages and crypto-native exchanges, helping the firm retain high-engagement retail clients who might otherwise move to standalone platforms. The move also positions Morgan Stanley to compete directly with Robinhood, Schwab and other brokerages offering integrated crypto services.

Bigger picture

Morgan Stanley is building a regulated crypto infrastructure inside its banking and brokerage operations. The firm plans to transition digital asset services to Morgan Stanley Digital Trust, a national trust bank currently being organised with the Office of the Comptroller of the Currency. This would bring custody, settlement and fiduciary oversight under Morgan Stanley's direct regulatory umbrella, similar to efforts by Ripple, Coinbase and Circle, which have also applied for or received trust charters. Morgan Stanley previously launched a Bitcoin ETF earlier in 2025, which now holds $384 million in net assets, and has filed amended S-1 forms for Ethereum and Solana ETFs. The crypto rollout is part of a broader E*TRADE platform upgrade that includes fractional share trading, an expanded IPO centre and enhanced tools for active traders, reflecting a push to offer an integrated investment experience across asset classes.

What to watch

Key developments include the launch of transfer functionality later in 2025, which will allow clients to move crypto in and out of their E*TRADE accounts. The transition of digital asset services to Morgan Stanley Digital Trust will signal how far the bank can bring crypto custody and settlement inside its regulated structure. Investors should also monitor the approval and launch of Morgan Stanley's Ethereum and Solana ETFs, which would expand the firm's digital asset product suite. Broader adoption metrics for the crypto trading service among E*TRADE's 9 million clients will indicate whether the integrated model gains traction with mass affluent investors. Finally, watch for regulatory developments around national trust bank charters, as approvals for firms like Circle and Ripple may set the pace for Morgan Stanley's own banking plans.