Morgan Stanley Launches E*Trade Crypto Trading with Lower Fees

Highlights:

• Morgan Stanley is testing crypto trading on E*Trade with a 50-basis-point fee.
• E*Trade users could access Bitcoin, Ether, and Solana later this year.
• The bank also targets ETFs, custody, tokenization, and stablecoin reserves.

The Wall Street crypto race entered a new phase as Morgan Stanley began direct digital asset trading on E*Trade. The pilot gives selected customers access to Bitcoin, Ether, and Solana through their existing brokerage accounts. According to Bloomberg, the service charges 50 basis points per transaction value. The rollout targets E*Trade’s 8.6 million users later this year. In addition, it gives the bank a direct channel into retail crypto trading, beyond funds and advisor-led exposure.

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E*Trade Pilot Starts with Lower Trading Fees

E*Trade already serves active retail investors who trade stocks, funds, and bonds. Therefore, crypto trading enters a platform that many clients already use for portfolio activity. The bank bought E*Trade in 2020, in a $13 billion deal that has strengthened its wealth business. E*Trade gives the firm a ready distribution channel for digital assets. Instead of sending clients to crypto-native exchanges, the bank can keep trading within its own ecosystem.

The launch follows a clear pricing strategy. Charles Schwab recently entered spot Bitcoin and Ether trading with a 75-basis-point fee. Robinhood promotes commission-free trading, yet spreads can still widen transaction costs. Coinbase fees also vary by size, payment method, and user tier.

Against this backdrop, the 50-basis-point pilot gives price-sensitive clients a cheaper route. It also lets traditional brokerage users trade crypto without moving assets to separate exchanges. Moreover, the bank has not opened the feature to every account yet. However, the planned full rollout would place crypto beside stocks, bonds, and exchange-traded funds inside E*Trade.

Morgan Stanley, one of the world's largest wealth management firms, is launching cryptocurrency trading services on its E*Trade platform.

Morgan Stanley is competing with rivals by offering lower pricing and fees than Coinbase, Robinhood, and Charles Schwab. The service is… pic.twitter.com/koFEUcffZt

— Wu Blockchain (@WuBlockchain) May 6, 2026

Custody, liquidity, and settlement support come through Zerohash. The Chicago-based infrastructure firm has worked with banks and fintech platforms that need digital asset rails. Mastercard has also pursued the company, highlighting demand for behind-the-scenes crypto plumbing.

Crypto Products Now Stretch Beyond Spot Trading

Morgan Stanley has built its latest push across several fronts. Its spot Bitcoin ETF, MSBT, began trading on NYSE Arca in April with a 0.14% expense ratio. This fee also came below many competing products at launch.

Moreover, the bank has filed for products tied to Ether and Solana as well. Therefore, E*Trade trading fits into a wider plan covering direct assets and listed funds. Jed Finn, the bank’s head of wealth management, described the plan as larger than cheaper crypto trades. He said the strategy aims to “disintermediate the disintermediators.”

Tether Reserve Market Gains Another Bank Option

The E*Trade rollout forms only one part of the bank’s digital asset buildout. Recently, the bank launched the Stablecoin Reserves Portfolio, known as MSNXX, in New York. The fund targets stablecoin issuers that need compliant reserve management. It invests in cash, U.S. Treasury securities, and overnight repurchase agreements.

MORGAN STANLEY LAUNCHES STABLECOIN RESERVES FUND

Morgan Stanley Investment Management has launched the Stablecoin Reserves Portfolio (MSNXX). It is a government money market fund built exclusively for stablecoin issuers.

The fund aligns with reserve requirements set out under… pic.twitter.com/ynDaPGPr8y

— BSCN (@BSCNews) April 24, 2026

This reserve product sits within the Institutional Liquidity Funds Trust. It aims to maintain a $1 net asset value while generating income from conservative holdings, aligning with reserve standards under the GENIUS Act. In addition, executives said the product responds to rising demand from stablecoin issuers.

Meanwhile, the bank has applied for a national trust bank charter. This charter would allow direct digital asset custody if regulators approve it. Furthermore, the firm is studying crypto-to-ETF conversions and tokenized equity trading.

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