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ToggleTraditional financial giants have officially challenged cryptocurrency exchanges, and their first move has been a deadly "price war."
According to a recent report by Bloomberg, Wall Street investment banking giant Morgan Stanley is preparing to launch a direct cryptocurrency trading service on its acquired online brokerage platform E*Trade, aiming to capture a significant share of the retail market with lower transaction costs.
Offering an ultra-low 0.5% transaction fee, targeting crypto giants.
In the past, retail investors looking to buy cryptocurrencies often had to bear relatively high transaction fees or implied spreads on centralized exchanges. However, Morgan Stanley has opted for a highly aggressive pricing strategy this time.
The report indicates that E*Trade will charge a fixed fee of 50 basis points (0.5%) on each cryptocurrency transaction, based on the total USD value of the transaction. This highly competitive fee structure directly undercuts the fee levels of Coinbase, the largest cryptocurrency exchange in the US, Robinhood, a popular platform for retail investors, and Charles Schwab, a traditional brokerage firm.
Targeting 8.6 million customers, full launch expected in 2026.
This major new feature is currently still in the pilot phase and is only available to a limited number of users to ensure system stability and compliance.
However, Morgan Stanley has outlined a clear expansion timeline. The official plan is to officially roll out this cryptocurrency trading service to all 8.6 million clients on the E*Trade platform later in 2026. This means that millions of traditional retail investors accustomed to investing in US stocks and ETFs will be able to directly purchase crypto assets in a cheaper and more seamless way.
Traditional financial institutions are deepening their cryptocurrency presence, and exchanges are facing a tough battle.
Market analysts point out that this is a key step for Morgan Stanley to further expand its crypto business. The bank has previously focused on providing high-net-worth clients or wealth management institutions with investment channels for Bitcoin spot ETFs; now, by entering the retail market through E*Trade, it demonstrates its aim to attract the general public and retail investors through "highly competitive pricing."
With Wall Street brokers, armed with massive funds and a large user base, entering the market with their "price advantage," crypto-native platforms like Coinbase, which heavily rely on retail transaction fees, are bound to face an unprecedented battle to defend themselves in 2026.
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