Major US investment bank Morgan Stanley is moving further into digital assets with a new pilot project. Through its subsidiary ETrade, the bank has launched a service allowing customers to buy and sell cryptocurrencies. The new offering stands out for its lower transaction fees compared to most retail crypto platforms.
Low-fee crypto transactions planned
According to Bloomberg, ETrade users participating in the pilot are charged a transaction fee amounting to just 0.5 percent of the trade value. This fee undercuts competitors such as Coinbase, Robinhood, and Charles Schwab, whose commissions can fluctuate between 0.6 percent and 0.95 percent depending on the transaction.
Morgan Stanley emphasizes that the appeal of this initiative for retail investors is not limited to cost savings. Jed Finn, the bank’s Head of Wealth Management, highlighted that this move initiates a larger structural transformation centered on client needs. Finn stressed that their aim is to reshape access to digital assets and reduce the industry’s reliance on intermediaries.
Jed Finn, a senior executive at Morgan Stanley, stated that the project is part of the bank’s “disintermediation” vision, adding that the ambition goes beyond merely offering lower fees.
ETrade remains a leading online securities trading platform in the United States, with millions of users. Since becoming fully owned by Morgan Stanley in 2020, it has ranked among the top choices for individual investors trading stocks and mutual funds.
Comprehensive digital asset strategy
Morgan Stanley has intensified its focus on digital assets in recent months. The company recently launched an exchange-traded fund focused on Bitcoin. It is also developing new investment vehicles involving other major cryptocurrencies such as Ether and Solana, signaling a broader commitment to the sector.
In parallel with these product offerings, infrastructure upgrades are underway. Morgan Stanley has applied for a national banking charter that would allow it to directly safeguard digital assets. This step is aimed at making secure digital custody services more accessible to its clients across the US.
Sources familiar with the matter told Bloomberg that the bank is developing products enabling users to transfer crypto holdings directly into exchange-traded funds, without the need for intermediary conversions. Additionally, tokenized stock trading could become available later this year, reflecting ongoing innovation in Morgan Stanley’s service lineup.
Retail crypto competition heats up
Morgan Stanley’s new initiatives could shake up the competitive landscape for retail crypto trading. Coinbase generated $3.32 billion in consumer transaction revenue in 2025. Rival Robinhood, for its part, reported about $1 billion in crypto-related revenue last year.
With plans to open up the new service fully to ETrade users by the end of the year, Morgan Stanley is poised to further bridge traditional banking and the crypto ecosystem. As one of America’s top financial institutions, the bank’s move is drawing industry-wide attention and could mark a significant turning point.
