Morgan Stanley tests cryptocurrency trading! With only a 0.5% low transaction fee, it will roll it out to 8.6 million users before the end of the year.

Morgan Stanley Subsidiary E*Trade Launches Cryptocurrency Spot Trading Pilot, Offering Fees Below Competitors at 0.5%. Partnering with Zerohash to Build Infrastructure, Full Rollout Planned by End of 2026.

Traditional Financial Giants Enter the Fee War, ETrade Initiates Cryptocurrency Spot Trading

According to Bloomberg, Wall Street investment banking giant Morgan Stanley announced that it is launching cryptocurrency spot trading through its online brokerage platform E*Trade. This move signifies traditional finance (TradFi) forces further expanding into the native crypto exchange space.

Under the pilot plan, Morgan Stanley charges a 50 basis point (0.50%) fee per trade, significantly lower than most mainstream competitors. In comparison, Charles Schwab’s crypto services charge 75 basis points, retail platform Robinhood about 95 basis points, and Coinbase around 60 basis points for retail customers.

This service is currently in the pilot phase, with Morgan Stanley planning to fully open to all 8.6 million ETrade account holders by the end of 2026. Supported assets initially include Bitcoin ($BTC), Ethereum ($ETH), and Solana ($SOL).

Morgan Stanley Wealth Management Head Jed Finn stated that this strategy offers low-cost fees and aims to achieve “de-intermediation re-intermediation” through integrated services, allowing clients to manage digital assets within a regulated framework.

Infrastructure and Deep Integration, Morgan Stanley Partners with Zerohash to Build New System

To ensure trading stability, Morgan Stanley collaborates with digital asset infrastructure provider Zerohash, responsible for liquidity, custody, and settlement. Morgan Stanley previously invested $104 million in Zerohash’s D-2 funding round. Through technological support, E*Trade users can directly hold crypto assets, replacing the previous model where exposure was only available via funds or index ETFs. The direct holding model gives investors greater control over assets while also introducing personal risk management.

• Related news: Morgan Stanley Enters Crypto Space! E*Trade to Open Crypto Trading and Layout RWA Tokenization

Morgan Stanley executives believe that the boundaries between decentralized finance (DeFi) and traditional finance are blurring, with banks committed to embedding crypto capabilities into trading, wealth management, and institutional services. Upcoming features include allowing clients to convert cryptocurrencies directly into ETF products. Additionally, the bank plans to launch its own digital wallet in the second half of 2026, supporting storage of cryptocurrencies and tokenized traditional assets like stocks, bonds, and real estate, strengthening its position in the digital asset ecosystem.

Policy Shifts and Market Benefits, MSBT’s Full Expansion After Success

The changing U.S. regulatory environment, with the Trump administration adopting a friendly stance toward cryptocurrencies, has accelerated Wall Street banks’ deployment. Morgan Stanley’s Bitcoin spot ETF (MSBT), launched in April, has become a strategic focus. MSBT’s extremely low management fee of 0.14% has attracted over $100 million in the first week. The bank also launched the MSNXX stablecoin reserve investment portfolio on April 23, designed specifically for stablecoin issuers.

• Related news: Bitcoin ETF Attracts $100 Million in First Week! Morgan Stanley Executive: Cryptocurrency Has Entered the Company’s Core

The bank has applied to the Office of the Comptroller of the Currency (OCC) to establish Morgan Stanley Digital Trust, a federally authorized trust bank that will offer crypto custody, trading, and staking services in the future. These initiatives demonstrate Morgan Stanley’s attempt to build a complete crypto industry chain from asset issuance and infrastructure to retail channels.

• Related news: Morgan Stanley Enters Crypto Custody! Submits Trust Bank Application to Launch Crypto Trading and Explore Lending

Retail Market Reshuffle, Traditional Brokers Challenge Native Crypto Exchanges

Morgan Stanley leverages its acquisition of E*Trade’s 8.6 million users to enter the market, posing a threat to existing crypto exchanges. Data shows Coinbase and Robinhood recorded substantial trading revenue in 2025, but traditional banks are beginning to offer low-cost, regulated services with asset allocation tools. As market expectations for 2026 turn optimistic, fee competition is expected to intensify.

Institutions like Goldman Sachs and JPMorgan are also investing in digital asset applications. The competition initiated by Morgan Stanley lowers the barriers to entry in the digital asset market, and this deep integration will become a new trend in the financial industry. For investors, this fee war means the cost to enter the digital asset market will further decrease.