Morgan Stanley mulls crypto into e-commerce: report
Morgan Stanley, one of the world's largest asset managers, is considering adding cryptocurrency trading to its InTrade online brokerage platform, The Information reported in a Jan. 2 report.
The wealth manager cited the expectation of a friendlier crypto regulatory environment under US President Donald Trump as a key issue.
Trump has promised to appoint industry-friendly leaders to key regulatory agencies and make the US the “crypto capital of the world.”
The plans make E-Commerce one of the biggest traditional retail brokers to add support for crypto trading, which could create meaningful competition for existing platforms like Coinbase.
Morgan Stanley bought e-commerce in 2020. The brokerage's 5.2 million accounts hold a total of nearly $360 billion, the data showed.
E-commerce can bring crypto to millions of investors. Source: E-commerce
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Brokers have accepted crypto.
Other traditional retail brokers that offer crypto trading include Robinhood, Fidelity, and Interactive Brokers. Bloomberg reports that Charles Schwab plans to increase crypto trading this year.
Tokens available on these platforms are generally more limited than crypto-native centralized exchanges like Coinbase.
Crypto trading has been a lucrative business for online brokers. According to Robinhood's Q3 2024 results, crypto trading volume and crypto revenue grew 112% and 165% year-over-year, reaching $14.4 billion and $61 million, respectively.
In June, Robinhood agreed to acquire crypto exchange Bitstamp in a $200 million deal to serve institutional investors in the United States.
Meanwhile, incumbent Coinbase posted revenue of $1.2 billion in the third quarter of 2024, primarily from crypto trading businesses.
Early mover
Morgan Stanley is an early mover in crypto compared to other traditional wealth managers.
In August, Morgan Stanley authorized 15,000 of its financial advisors to recommend Bitcoin (BTC) exchange-traded funds (ETFs) to clients, a person familiar with the matter told Cointelegraph.
As one of the largest wealth managers in the US, Morgan Stanley's advisory network manages $3.75 trillion, including $1 trillion in self-directed client accounts.
Morgan Stanley Advisors has been advising BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC), both considered “blue chips” among Bitcoin exchange-traded funds.
Magazine: Bitcoin payments are being undermined by a centrally stable coin.
