Morgan Stanley Launches Crypto Trading on E*TRADE Platform with 0.5% Fees

Morgan Stanley launched cryptocurrency trading on E*TRADE on May 6, 2026, charging 0.5% transaction fees that undercut Coinbase (60 basis points), Robinhood (95 basis points), and Schwab (75 basis points). The service initially supports Bitcoin, Ethereum, and Solana before expanding to all 8.6 million E*TRADE clients later in 2026. Morgan Stanley also filed for spot Bitcoin and Solana ETFs and applied for an OCC national trust bank charter on February 18, 2026.

E*TRADE crypto launch details

• ▪The E*TRADE cryptocurrency service will initially support Bitcoin, Ethereum, and Solana before a full launch for all 8.6 million E*TRADE clients later in 2026.
• ▪Morgan Stanley launched cryptocurrency trading on its E*TRADE platform on May 6, 2026.
• ▪Morgan Stanley acquired E*TRADE for $13 billion.

Competitive fee structure

• ▪Coinbase brought in $3.32 billion from consumer transactions in 2025.
• ▪Charles Schwab charges 75 basis points for cryptocurrency trading.
• ▪Morgan Stanley implemented a 50-basis-point (0.5%) fee structure for cryptocurrency trading on E*TRADE.
• ▪Robinhood recorded approximately $1 billion from cryptocurrency-related activity in 2025.

Broader digital asset strategy

• ▪Morgan Stanley is preparing for potential tokenized equity trading later in 2026.
• ▪Morgan Stanley filed for spot Bitcoin and Solana exchange-traded funds (ETFs).
• ▪Morgan Stanley wealth management executive Jed Finn stated the strategy's goal is to "disintermediate the disintermediators."
• ▪Morgan Stanley is planning additional Ethereum- and Solana-related products.
• ▪Morgan Stanley is exploring services that would allow clients to convert crypto holdings into ETFs without triggering a sale.

National trust bank charter

• ▪Morgan Stanley submitted an application to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter on February 18, 2026.
• ▪The national trust bank charter would permit Morgan Stanley to provide trading and staking services inside a controlled environment.
• ▪The national trust bank charter would enable Morgan Stanley to directly custody digital assets.

Regulatory environment shift

• ▪Major financial institutions are accelerating their foray into digital assets in response to changes in the US regulatory landscape.
• ▪Banks investigating cryptocurrency offerings now face fewer barriers due to a more accommodating US governmental position.

Perspective of Incumbent crypto exchanges (Coinbase, Robinhood)

• ▪Robinhood's approximately $1 billion in cryptocurrency-related activity in 2025 faces competitive pressure from Morgan Stanley's 0.5% fee structure versus Robinhood's 95 basis points.
• ▪Coinbase generated $3.32 billion from consumer transactions in 2025, revenue now threatened by traditional finance competitors offering lower fees.

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