Wall Street Giants Morgan Stanley, Charles Schwab Gear Up for Direct Crypto Trading

In a significant move signaling traditional finance's deepening embrace of digital assets, both Morgan Stanley and Charles Schwab have announced plans to offer direct cryptocurrency trading to their clients.

Morgan Stanley is reportedly aiming for a rollout on its E*Trade platform by 2026, according to Bloomberg sources familiar with the matter, while Charles Schwab indicated its intention to launch spot crypto trading within the next year, RIABiz reported in April.

These announcements highlight a growing trend among major financial institutions to cater to increasing investor demand for direct exposure to cryptocurrencies like Bitcoin and Ethereum. Until now, Morgan Stanley's crypto offerings were primarily limited to high-net-worth clients through ETFs and derivatives. The planned integration into E*Trade would open the door for its broader retail investor base to directly buy and sell digital assets.

Charles Schwab's move follows a similar trajectory, with the asset management giant preparing to launch spot crypto trading on its trusted platform within the next 12 months. This initiative aims to provide its extensive user base with seamless access to the cryptocurrency market.

Both firms are exploring partnerships within the crypto ecosystem to build the necessary infrastructure for these ventures. These developments come amid a shifting regulatory landscape in the United States, particularly following signals of a more favorable stance towards the crypto industry.

The entry of these Wall Street heavyweights into the direct crypto trading space is poised to intensify competition with existing crypto-native platforms like Coinbase and Robinhood. Their established brand names and regulatory compliance frameworks could attract a segment of investors who have been hesitant to engage with less traditional crypto exchanges.