CoinDesk
Morgan Stanley is rolling out crypto trading on E*Trade at 50 basis points per transaction, undercutting Coinbase, Robinhood, and Charles Schwab, which charge 60 to 95 bps, according to Bloomberg. The pilot is the first phase of a broader retail rollout that will eventually reach all 8.6 million E*Trade customers later this year.
The bank already offers spot Bitcoin ETF exposure and is building out products tied to ether and Solana. On the infrastructure side, Morgan Stanley has applied for a national trust bank charter that would let it directly custody digital assets — a step that, if approved, removes a major intermediary layer between the bank and client crypto holdings.
Why it matters
Head of Wealth Management Jed Finn framed the move as an effort to "disintermediate the disintermediators" — a deliberate shot at Coinbase and Robinhood, which built their retail crypto businesses on top of the very bank customers Morgan Stanley already owns. The fee gap is the hook, but the trust charter is the structural bet: direct custody, crypto-to-ETF conversion without selling, and potential tokenized equity trading later this year point to a full-stack offering rather than a price war.
Market impact
The pricing puts real pressure on incumbent retail venues. Coinbase pulled $3.32 billion in consumer transaction revenue in 2025; Robinhood reported nearly $1 billion in crypto-related revenue. A 10–45 bps fee advantage on a captive base of 8.6 million brokerage accounts is not a marketing line — it is volume that does not need to be won, only routed. Compass Point reiterated a Neutral on Coinbase with a $36 target, flagging that expected growth is largely priced in, while Clear Street maintained a Buy with a $50 target on competing venue Bullish following its $4.2B Equiniti transfer-agent acquisition.
Frequently asked questions
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What fee is Morgan Stanley charging for crypto trading on E*Trade?
The pilot charges 50 basis points per transaction, undercutting Coinbase, Robinhood, and Charles Schwab, which charge between 60 and 95 basis points, according to Bloomberg.
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When will the crypto trading rollout reach all E*Trade users?
The pilot is live now, with full rollout to all 8.6 million E*Trade customers scheduled for later this year, per Bloomberg.
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What crypto products does Morgan Stanley already offer?
The bank already offers spot Bitcoin ETF exposure and is building out products tied to ether and Solana, with the new E*Trade trading service layered on top of that lineup.
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What is the national trust bank charter Morgan Stanley applied for?
Morgan Stanley has applied for a national trust bank charter that, if approved, would let the bank directly custody digital assets rather than routing client holdings through third-party custodians.
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How does this affect Coinbase and Robinhood?
Coinbase generated $3.32B in consumer transaction revenue in 2025 and Robinhood reported nearly $1B in crypto-related revenue. Compass Point reiterated a Neutral on Coinbase with a $36 target, saying expected growth is largely priced in.
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