Morgan Stanley launched an ultra-cheap crypto business to challenge Coinbase and Robinhood
Morgan Stanley, which spent $13 billion on e-commerce six years ago, is now using that platform to offer it at a lower price than its competitors.
The bank charges clients 50 basis points (half a cent for every dollar) for crypto transactions on E*Trade. Robinhood costs about double that at 95 basis points. Coinbase takes 60 basis points.
Charles Schwab, who announced his own crypto push last month, charges 75 basis points. The service is currently in testing mode and all 8.6 million E* business account holders are expected to have access before the end of the year, starting with Bitcoin, Ether and Solana.
“This crypto is much bigger than trading cheaply,” said Jed Finn, who heads Morgan Stanley's wealth management division. “In a way, the strategy is dividing mediators.”
The startup is part of the company's strategy as Wall Street firms increasingly compete with indigenous exchanges. Executives are combining traditional finance and decentralized finance, with Morgan Stanley incorporating crypto capabilities across its business, wealth and institutional services.
The expansion will come down to President Donald Trump after a shift in US policy, with his administration taking a more crypto-friendly stance, encouraging banks to dive into digital assets after years of regulatory hesitancy.
This is a developing story.
Disclosure: This article was edited by Vivian Nguyen. See our Editorial Policy for more information on how we create and review content.
