Morgan Stanley Launches Crypto Trading, Fees Reduced to 50 Basis Points
Morgan Stanley announced the official launch of crypto trading services on its retail brokerage platform E*TRADE, with fees reduced to 50 basis points (0.5%), lower than major competitors like Coinbase, Robinhood, and Charles Schwab.
This move has quickly heightened discussions in the market about traditional finance (TradFi) 'taking over' the crypto industry.
Kevin Lee, Chief Business Officer of Gate, pointed out that global crypto trading platforms have long shifted from a single spot fee model to a diversified revenue structure including staking, derivatives, institutional services, and ecosystem development. The entry of TradFi is more about intensifying competition rather than simple 'replacement.'
Source: Public Information
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Morgan Stanley's move is a landmark action indicating Wall Street's mainstream institutions further embracing the crypto retail sector. Previously, firms like BlackRock and Fidelity have entered through ETFs and custody services, while E*TRADE directly targets retail users with low-rate spot trading, aiming to bring traditional investors into the crypto market with lower barriers.
In terms of capital pathways, TradFi is quickly capturing spot market share with its compliant brand, large customer base, and low fees, forcing crypto-native platforms to accelerate their transformation towards high-margin derivatives, institutional services, and global expansion. Meanwhile, the compression of spot trading profits will shift industry valuation logic from 'volume-driven' to 'comprehensive financial service capability-driven.'
Structural judgment: This essentially belongs to the reconstruction of the industrial chain. TradFi giants like Morgan Stanley will internalize crypto trading into traditional brokerage platforms. The mechanism is that after the regulatory environment becomes clear, capital seeks compliance, low costs, and one-stop services, pushing the pricing power of spot trading from crypto-native exchanges to traditional financial infrastructure, accelerating the deep integration of crypto assets with the mainstream financial system.
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The lower the fees, the easier it is for TradFi to pull users away from crypto platforms.
Spot trading is the entry point, while derivatives and institutional services are the real moat.
Traditional finance is not here to eliminate crypto, but to redefine its entry points and rules.