Morgan Stanley Undercuts Crypto Exchanges

Morgan Stanley is piloting crypto trading on E*Trade for its 8.6 million customers and is charging a 50-basis-point fee — cheaper than Coinbase, Robinhood, and some brokerages. The bank frames the strategy as 'disintermediating the disintermediators,' betting that incumbent distribution, custody and trust can win retail crypto volume and compress exchange margins. — If major banks capture retail crypto flows by underpricing exchanges, it could shift market power, accelerate regulatory oversight via custodial firms, and force consolidation or business-model changes among crypto-native platforms.