Morgan Stanley Debuts Crypto Trading, Undercuts Rivals on Price

[sergiorus]

https://www.bloomberg.com/news/articles/2026-05-06/morgan-stanley-debuts-crypto-trading-undercuts-rivals-on-price

https://www.coindesk.com/markets/2026/05/06/morgan-stanley-brings-crypto-trading-with-lower-fees-than-rivals

Do you guys thing this might be the end of traditional crypto exchanges?

We have seen many of them shutting down during bear markets because their business was too unprofitable to operate. What would happen if they also lost a big share of their volumes to the platforms run by big banks?

I bet giants like Morgan Stanley can afford offering lower fees for quite a long time to squeeze most of the competitors.

[Oshosondy]

Do you guys thing this might be the end of traditional crypto exchanges?

We have seen many of them shutting down during bear markets because their business was too unprofitable to operate. What would happen if they also lost a big share of their volumes to the platforms run by big banks?

Which traditional crypto exchange did you know that closed down during the recent bear market? I do not know any. The big ones that I know and that I am using are all continuing making money and they are going better upgrade.

Competition will really be good, it is what we want but I do not see any exchanges that will close down yet unless they are exchanges with is a very trading volume with low liquidity that could have been collapsed without Morgan Stanley crypto services.

[sergiorus]

Do you guys thing this might be the end of traditional crypto exchanges?

We have seen many of them shutting down during bear markets because their business was too unprofitable to operate. What would happen if they also lost a big share of their volumes to the platforms run by big banks?

Which traditional crypto exchange did you know that closed down during the recent bear market? I do not know any. The big ones that I know and that I am using are all continuing making money and they are going better upgrade.

Competition will really be good, it is what we want but I do not see any exchanges that will close down yet unless they are exchanges with is a very trading volume with low liquidity that could have been collapsed without Morgan Stanley crypto services.

I specifically wrote ''bear markets'' meaning there were multiple such exchanges across multiple bear markets.

We entered the last bear market with liquidity already concentrated among only a few leaders but I can name at least one that didn't survive it - it was a relatively large one called Hotbit (https://www.tradingview.com/news/u_today:3f19374e7094b:0-hotbit-exchange-suspends-operations-customers-have-30-days-to-withdraw-funds/)

Also a few very small local exchanges that had ties with FTX (Japanese Liquid/Quoine for example) had to end operations after the FTX collapse but that was a bit different cause.

P.S. Seems that Bittrex shut down that year too but it had already been irrelevant for years.

[Wiwo]

https://www.bloomberg.com/news/articles/2026-05-06/morgan-stanley-debuts-crypto-trading-undercuts-rivals-on-price

https://www.coindesk.com/markets/2026/05/06/morgan-stanley-brings-crypto-trading-with-lower-fees-than-rivals

Do you guys thing this might be the end of traditional crypto exchanges?

We have seen many of them shutting down during bear markets because their business was too unprofitable to operate. What would happen if they also lost a big share of their volumes to the platforms run by big banks?

I bet giants like Morgan Stanley can afford offering lower fees for quite a long time to squeeze most of the competitors.

You are making a very important argument but with mix feelings and longer tendency of the discussion, but not to sway from the core concern you riaised here are what it is in most recent cases of bear market and possibilities and influences of institutional investors like ETFS and what can become it influences and control.

Morgan Stanley point of view and approach is on the institutional aspect,  which have alot of advantages over the market due to their l
Reserves and scop coverage of their company, but their dont have total control likewise the banks, so for that reason traditional crypto exchanges will continue to exist.

[Strongkored]

The emergence of Morgan Stanley's crypto exchange is not meant to kill traditional crypto exchanges but will actually make competition even tighter, hopefully this will impact traders as they will get fee discounts.
Thinking too far that traditional crypto exchanges will be replaced by Morgan Stanley is the same as predicting that DeFi crypto will replace banks, but until now that has not happened.

[sergiorus]

The emergence of Morgan Stanley's crypto exchange is not meant to kill traditional crypto exchanges but will actually make competition even tighter, hopefully this will impact traders as they will get fee discounts.
Thinking too far that traditional crypto exchanges will be replaced by Morgan Stanley is the same as predicting that DeFi crypto will replace banks, but until now that has not happened.

Not just by Morgan Stanley, they are just pioneering. It's just a matter of time until other big banks join the game.
Comparison with DeFi is nonsensical, DeFi doesn't match even 1% of big banks' resources, security, political influence.
Also, you underestimate how struggling it is for some exchanges to stay afloat. Losing even a few % of their loyal users could lead to them having to shut down. Obviously I don't mean giants like Binance, OKX or Coinbase but most of the others are not that safe.

[cryptoaddictchie]

Do you guys thing this might be the end of traditional crypto exchanges?

We have seen many of them shutting down during bear markets because their business was too unprofitable to operate. What would happen if they also lost a big share of their volumes to the platforms run by big banks?

I bet giants like Morgan Stanley can afford offering lower fees for quite a long time to squeeze most of the competitors.

Im confuse when you say traditional crypto exchange or the term should br old cex in the past like what you mentioned like bitrrex and ftx. Im thinking of a traditional crypto cec is the etoro which is previously a stock market exchange that adds crypto products on their platform. I just heard that they shut down.

Most unknown exchange will likely close due to lack of users even the modern type of cex. Cause the competition on users aquisition is tough and mostly rely on big cex markets.

[Dr.Bitcoin_Strange]

The launching of Etrade by Morgan will not bring an end to traditional crypto exchanges, if the new exchange of Morgan is that perfect, it would only bring about competition with other booming tier 1 and tier 2 exchange but what ever would bring down the business of those  big exchange is something they won't allow to happen, they will adopt to any new measure that will not cause their business to collapse. It's even good that competition like that would arise so that the traditional exchange would cut down on some of their huge charges.

[GreatArkansas]

(....)
Do you guys thing this might be the end of traditional crypto exchanges?

I don't think so, because these big institutions might not be suitable for other users! I'm still going with these traditional exchanges, they still got the volume, the users, and the innovation.
What I can see on these  big banks are just their names, well they have the money too but they are the traditional finance (non crypto) and these tradtional crypto exchanges are in the market of crypto already for ages.

[Alphakilo]

The emergence of Morgan Stanley's crypto exchange is not meant to kill traditional crypto exchanges but will actually make competition even tighter, hopefully this will impact traders as they will get fee discounts.
Thinking too far that traditional crypto exchanges will be replaced by Morgan Stanley is the same as predicting that DeFi crypto will replace banks, but until now that has not happened.

Morgan Stanley still has a lot to prove in the industry and this current stand is more like the end of monopoly rather than the doomsday end for traditional crypto exchanges.
Not many folks are as enlightened to switch to newer and promising platforms, until they are convinced otherwise, hence why there would still be prevalence of scams because some people never learn the right information and know the right time to apply it, until they become victims.

One thing for sure is the end of the wild West era of monopoly by existing exchange platforms mostly in the current space where Morgan Stanley just pitched his tent.
Am hoping people don't get to take the path of least resistance in the end.

[JeffBrad12]

I bet giants like Morgan Stanley can afford offering lower fees for quite a long time to squeeze most of the competitors.

They seems do be doing exactly that from their strategy above, robinhood recently upped their fee at around 95bps, coinbase around 60 to 100 bps.

Sounds like a good deal for anyone inside the US who trades crypto. This especially could be a massive problem for coinbase considering how much they've roundtripped this year alone.
Seems like they're only targeting domestic market though.

[crwth]

I'm not sure whether the trades on some exchanges are showing the full fee breakdown. I have read that there are hidden markups on ETrade. It might not be as straightforward on the fee as one might expect. There are also fees; if you want lightning-fast reactions, you'll pay higher costs for faster execution.

I'm going to wait for more reviews on this because I'm more on derivatives for larger volume as well.

[slaman29]

We have seen many of them shutting down during bear markets because their business was too unprofitable to operate. What would happen if they also lost a big share of their volumes to the platforms run by big banks?

Really? I can't even think of 1 that shut down because of this reason. All the ones I know died are from scams or hacks (I think personally they were all scams, so easy to pretend you got hacked).

If Morgan Stanley knows how to beat guys like Binance, I will personally buy a Trump NFT.

[sergiorus]

We have seen many of them shutting down during bear markets because their business was too unprofitable to operate. What would happen if they also lost a big share of their volumes to the platforms run by big banks?

Really? I can't even think of 1 that shut down because of this reason. All the ones I know died are from scams or hacks (I think personally they were all scams, so easy to pretend you got hacked).

If Morgan Stanley knows how to beat guys like Binance, I will personally buy a Trump NFT.

https://www.cryptowisser.com/exchange-graveyard/

Welcome to the exchange graveyard. Almost 400 platforms closed down since 2014. Not all of them due to going unprofitable due to bear markets but many