This step could make E-Trade a serious competitor against major rivals such as Coinbase. American multinational investment bank Morgan Stanley announced that it plans to offer crypto trading services through E-Trade, according to a report published on January 2.

This decision of the bank is directly related to the Trump administration’s promise of a more flexible regulatory environment for digital assets.

Morgan Stanley is making preparations for E-Trade users to have direct access to crypto trading. Initially, they plan to focus on leading cryptocurrencies such as Bitcoin and Ethereum.

However, to carry out this plan, the bank will need regulatory approval from the Federal Reserve since it is considered a bank holding company. Obtaining this approval is a prerequisite for the investment bank to take an important step regarding digital assets.

During his presidential campaign, Trump made promises that cryptocurrencies and digital assets should be supported. His goal was to make the United States the “crypto hub” of the world.

In line with this strategy, it is aimed to appoint crypto-friendly individuals to key positions in regulatory agencies and create a looser regulatory framework for digital assets.

Specifically, this approach involves increasing oversight over digital assets but shifting most oversight mechanisms from the SEC to the CFTC. CFTC is known for its crypto-friendly approach.

Morgan Stanley strengthened its strategy in this field by purchasing E-Trade at the end of 2020.

This acquisition, in a $13 billion all-stock deal, significantly expanded the bank’s asset management operations and merged with E-Trade’s retail investor base and digital platform. This merger allowed the bank to offer broader financial services to its broad customer base.

Trading crypto on E-Trade’s platform offers a great opportunity to introduce digital assets to a wider audience. The bank will reach this audience with E-Trade users managing assets worth $360 billion.

This move could be an important step towards greater participation in the retail crypto market and establishing E-Trade as a traditional exchange offering crypto services. This development will be a direct competitor to major crypto platforms such as Coinbase and will challenge them to become the market leader.

In addition, competition is expected to increase with this move by Morgan Stanley. E-Trade aims to increase its market share through strategies such as affordable pricing and integrating crypto with existing financial services.

Morgan Stanley, on the other hand, led the way among Wall Street banks last year by allowing its financial advisors to offer spot Bitcoin ETFs to selected clients. In order to minimize the risks of this trade, the bank carefully monitors its customers’ crypto investments and has imposed restrictions to ensure balance.

Morgan Stanley’s plans to offer crypto trading through its E-Trade platform could be a major turning point in the digital asset market. Integrating crypto trading into traditional exchange and financial services will open up more opportunities for retail investors while also intensifying competition with major crypto platforms.