“With us becoming a white-label stablecoin issuer for so many different groups, you start to think about what’s the incentive structure, and is everything still aligned,” McCauley said.

Paxos did not respond to requests for comment by press time.

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Morgan Stanley offices (Sven Piper/Unsplash)

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What to know:

  • Morgan Stanley is launching crypto trading on its E*Trade platform with a 50-basis-point fee, undercutting rivals like Coinbase, Robinhood and Schwab and intensifying a price war in digital-asset trading.
  • Traditional finance analysts say the move could sharply compress margins for U.S. crypto exchanges, while crypto-native executives argue that global platforms…

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