E-Trade, Morgan Stanley’s cryptocurrency subsidiary, is preparing to offer cryptocurrency trading. Information reported January 2nd This was disclosed by two people familiar with the plan.
The lender’s move is motivated by expectations for a more favorable regulatory environment under President-elect Donald Trump, the report said.
However, before launching such a service, E-Trade will need approval from key regulators, including the Federal Reserve. The parent company is a bank holding company and is therefore under the supervision of the central bank.
Morgan Stanley acquired E-Trade in 2020. At the time of the acquisition, the company managed more than 5.2 million accounts and $360 billion in assets.
Morgan Stanley’s entry into crypto trading could bring significant capital and legitimacy to the space and encourage further participation from retail and institutional investors.
Notably, Charles Schwab, the largest publicly traded securities firm in the United States, also showed interest In cryptocurrency trading.
Chief Executive Officer Rick Wurster said in November that Schwab would explore possibilities if the regulatory situation improves. Like E-Trade, Schwab conducts banking operations and requires approval from the Federal Reserve.
If these companies can secure the necessary approvals, the crypto market could see a wave of new entrants, increasing competition, challenging existing players and bridging the gap between traditional and digital finance. There is.
Crypto optimism in the US
The possibility of traditional financial giants launching crypto trading services highlights mainstream interest in the sector now that regulations could become friendlier.
As President Trump nominates crypto-friendly names for his team, like The appointment of new U.S. Securities and Exchange Commission Chairman Paul Atkins could involve existing agencies to reshape the competitive landscape while drawing more capital into the market.
In addition to traditional financial companies entering the crypto market, industry players are also hope Regarding regulatory moves on the first day of President Trump’s inauguration. An executive order to ease access to banking services is also expected.
Additionally, new crypto-related products may enter the market, further increasing interest from institutional investors. According to Bloomberg Exchange Traded Fund (ETF) analysts Eric Balchunas and James Seifert, wave of approval About this year’s new crypto ETFs.
mentioned in this article
