E*TRADE, Owned by Morgan Stanley, Contemplates Entering Cryptocurrency Trading as Regulatory Landscape Evolves
The global investment banking firm and provider of financial services, Morgan Stanley, is reportedly exploring the possibility of introducing cryptocurrency trading via its subsidiary, E*TRADE, in anticipation of more lenient regulatory guidelines under the forthcoming second administration of President Trump.
As initially reported by The Information, the plans are currently at an early, investigative stage.
In the 2020 acquisition, Morgan Stanley secured E*TRADE for a sum of $13 billion. At present, E*TRADE provides clients with access to the cryptocurrency market indirectly via products such as futures, ETFs (exchange-traded funds), and stocks that are connected with digital currencies. Among the products on E*TRADE’s roster are the Grayscale Bitcoin Trust and the ProShares Bitcoin Strategy ETF.
With the launch of straightforward cryptocurrency trading capabilities, E*TRADE would become one of the major traditional finance companies to delve into digital asset exchange. This isn’t a completely new notion for E*TRADE; even before Morgan Stanley’s takeover, the once-autonomous ETrade Financial Corp. contemplated incorporating cryptocurrency trading in 2018, but the idea was shelved due to regulatory hurdles and the subsequent acquisition.
Now, nearly seven years after its original contemplation, E*TRADE is revisiting the idea of venturing into cryptocurrency exchange, motivated by the likely advent of a second Trump administration which is believed to foster a crypto-friendly regulatory framework, according to Crypto Briefing. This political shift could make the United States a forerunner in the crypto industry.
The reconsideration by E*TRADE to offer direct cryptocurrency trading appears as a tactical move to anticipate regulatory easing and to capture the increasing investor appetite for digital currencies. With this initiative, E*TRADE and therefore parent Morgan Stanley could secure a strategic advantage over conventional financial organizations that have yet to provide crypto-related services.
Morgan Stanley’s potential foray into the realm of crypto trading, through E*TRADE, would also pose a stiff competition to incumbent giants in the U.S. cryptocurrency exchange market, such as Coinbase Global Inc. and Robinhood Markets Inc. This competitive climate might benefit consumers through improved services and conditions, yet places existing players under pressure, especially when the emerging competitor is backed by one of the largest banking institutions globally, boasting a $201 billion market capitalization.
Image: SiliconANGLE/Ideogram
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