A Morgan Stanley subsidiary is considering adding cryptocurrency services to its existing TradFi product suite.
Morgan Stanley’s E-Trade is reportedly exploring the possibility of offering cryptocurrency and digital asset trading to its customers, according to The Information on Thursday, Jan. 2. E-Trade currently provides bonds, stocks, index funds, and other traditional financial investment products. Morgan Stanley acquired the brokerage in 2020.
Expectations for crypto-friendly regulations under the President Donald Trump administration are likely a precursor to E-Trade’s potential decision, the report noted.
Bullish sentiment around cryptocurrencies has soared following Trump’s victory in the U.S. general elections in November. His campaign promises to create a strategic Bitcoin (BTC) reserve, nominate crypto-savvy officials like David Sacks and Paul Atkins, and the post-election acceleration of Bitcoin’s value have buoyed the industry’s outlook for 2025.
Legacy banks like Goldman Sach hinted at participation in cryptocurrency markets if regulators permit. Goldman Sach also disclosed talks to reorganize its digital asset platform as an independent business, fueling adoption hopes.
Wealth managers bid for more exchange-traded funds with the U.S. Securities and Exchange Commission, looking to pivot outside of ETFs backed by Bitcoin and Ethereum (ETH).
Issuers like Bitwise and Grayscale applied to list Solana (SOL) and (XRP) ETFs, although the former may experience regulatory roadblocks until Trump takes office.
