Morgan Stanley Launches Crypto Trading Pilot With Lower Fees Than Rivals

Morgan Stanley enters retail crypto trading with lower fees, increasing pressure on Coinbase and Robinhood.

Growing demand for digital assets continues to reshape competition among major financial firms. Lower fees and broader access have become central battlegrounds for companies chasing market share. Morgan Stanley’s latest move signals that Wall Street firms want a larger role in everyday crypto investing.

Morgan Stanley Targets Retail Crypto Market With Lower Trading Fees

Morgan Stanley has started a crypto trading pilot through its E*Trade platform, offering lower transaction fees than several established rivals. According to Bloomberg, the pilot currently charges users 50 basis points per trade, below rates commonly charged by platforms such as Coinbase, Robinhood, and Charles Schwab.

Plans call for a broader rollout later this year across E*Trade’s 8.6 million customer accounts. Morgan Stanley executives view the initiative as more than a pricing battle. 

Jed Finn, head of wealth management at the bank, said the effort aims to reduce reliance on existing crypto intermediaries. He added that the platform would give clients direct access through familiar banking services.

Recent activity shows Morgan Stanley steadily widening its digital asset footprint. Earlier efforts included launching a Bitcoin exchange-traded fund while preparing additional investment products tied to Ether and Solana. Separate infrastructure work is also underway as the bank seeks a national trust bank charter that would allow direct custody of digital assets.

Wall Street Eyes Tokenized Trading Amid Rising Crypto Revenue Battle

Bloomberg sources also said Morgan Stanley is studying ways for customers to convert crypto holdings into exchange-traded products without triggering outright sales. Internal preparations for tokenized equity trading are reportedly advancing as well, with possible launches under consideration later this year.

Competition in retail crypto trading remains intense. Coinbase generated $3.32 billion in consumer transaction revenue during 2025, reflecting continued strength in retail activity despite broader market volatility. 

Also, Robinhood reported nearly $1 billion in crypto-related revenue, underscoring that digital assets remain a major driver of growth for trading platforms. Lower-cost trading from a major Wall Street institution could place additional pressure on existing crypto firms as banks push further into the sector.

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