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

A Morgan Stanley subsidiary, E*Trade, has launched a cryptocurrency spot trading pilot, offering fees 0.5% lower than competitors. Together with Zerohash, it will build the infrastructure and plans to fully roll out by the end of 2026.

Traditional Finance Giants Enter the Fee “Red Sea,” ETrade Launches Cryptocurrency Spot Trading

According to Bloomberg, Wall Street investment banking giant Morgan Stanley has announced that it will launch cryptocurrency spot trading through its online brokerage platform E*Trade. This move symbolizes the further expansion of traditional finance (TradFi) into the domain of native crypto exchanges.

Under the pilot program, Morgan Stanley charges 50 basis points (0.50%) per trade, a fee rate that is significantly lower than most major competitors. By comparison, the crypto services offered by Charles Schwab charge 75 basis points, retail platform Robinhood is about 95 basis points, and Coinbase charges about 60 basis points to retail customers.

This service is currently in the pilot stage. Morgan Stanley expects to fully open ETrade to all 8.6 million account holders by the end of 2026. Assets initially supported include Bitcoin ($BTC), Ether ($ETH), and Solana ($SOL).

Jed Finn, Head of Wealth Management at Morgan Stanley, said the 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 a New System

To ensure trading stability, Morgan Stanley is partnering with digital asset infrastructure provider Zerohash, which will handle liquidity, custody, and settlement. Morgan Stanley previously invested $104 million in Zerohash’s D-2 funding round. With technological support, E*Trade users will be able to hold cryptocurrency assets directly, replacing the previous model in which exposure was only available via funds or index exchange-traded funds (ETFs). Direct holding gives investors greater control over assets, while also involving personal risk management.

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

Morgan Stanley executives believe the boundary between decentralized finance (DeFi) and traditional finance is becoming increasingly blurred. Banks are working to embed crypto capabilities into trading, wealth management, and institutional services. Features under development include allowing clients to convert cryptocurrencies directly into ETF products. In addition, the firm plans to launch its own digital wallet in the second half of 2026. The wallet will support storing cryptocurrencies and tokenized traditional assets such as stocks, bonds, and real estate, strengthening its presence in the digital asset ecosystem.

Policy Shifts and Market Tailwinds: Full Expansion After MSBT’s Success

Changes in the U.S. regulatory environment, with the Trump (Donald Trump) administration adopting a friendly stance toward cryptocurrencies, have prompted Wall Street banks to accelerate their build-out. Morgan Stanley’s Bitcoin spot ETF (MSBT), launched in April, has become the focus of its strategy. MSBT’s extremely low management fee of 0.14% drew attention, attracting more than $100 million in inflows in its first week. The firm subsequently launched the MSNXX stablecoin reserve investment portfolio on April 23. This government money-market fund is designed specifically for stablecoin issuers.

• Related news: Bitcoin ETFs Pull in $100 Million in the First Week! Morgan Stanley Executive: Cryptocurrency Has Entered the Core of the Company

The bank has applied to the Office of the Comptroller of the Currency (OCC) to establish Morgan Stanley Digital Trust. In the future, this federally authorized trust bank will provide crypto custody, trading, and staking services. These moves show that Morgan Stanley is trying to build a complete crypto industry chain—from asset issuance and infrastructure to retail channels.

• Related news: Morgan Stanley Moves Into Crypto Custody! Submits Trust Bank Application to Roll Out Crypto Trading and Explore Lending

Retail Landscape Shifts as Traditional Brokers Challenge Native Crypto Exchanges

By leveraging the 8.6 million user base brought to the market through its acquisition of E*Trade, Morgan Stanley poses a threat to existing cryptocurrency exchanges. Data shows that Coinbase and Robinhood recorded significant trading revenue in 2025, but traditional banks are starting to offer low-cost, regulated services with asset allocation tools. As market expectations for 2026 grow more optimistic, fee competition is expected to intensify further.

Institutions such as Goldman Sachs and JPMorgan are also rolling out digital asset applications. The competitive move initiated by Morgan Stanley lowers the barriers to entry in the digital asset market, and this deep integration is set to become a new trend in the financial industry. For investors, this fee war means the cost to enter the digital asset market will continue to decrease.