According to source data, this move by the lender is motivated by expectations of a more favorable regulatory environment under the new administration of the newly elected U.S. President Donald Trump.
However, before launching such a service, E-Trade will require approval from key regulators, including the Federal Reserve System. Its parent company is a bank holding organization, which means it is subject to oversight by the central bank.
Morgan Stanley acquired E-Trade in 2020. At the time of the acquisition, the company managed over 5.2 million accounts and $360 billion in assets.
Morgan Stanley's entry into the cryptocurrency market will bring significant capital and legitimacy to this sector, potentially encouraging greater participation from both individual and institutional investors.
Notably, Charles Schwab, the largest publicly traded brokerage firm in the U.S., has also expressed interest in cryptocurrency trading.
In November, the company's CEO, Rick Wurster, mentioned that Schwab would explore this opportunity if regulatory conditions improve. Like E-Trade, Schwab will require approval from the Federal Reserve System through its banking operations.