Morgan Stanley Launches Crypto Trading on E*Trade

Drift Protocol announces recovery plan for April 1 exploit

Drift Protocol has announced a comprehensive recovery plan for users affected by the April 1 exploit. Every impacted wallet will receive recovery tokens representing their verified losses, with 1 token = $1 of verified loss. The recovery pool is seeded with approximately $3.8 million in protocol assets converted to USDT, and will grow quarterly through exchange revenue, partner capital, and Tether's matched deployment up to $127.5 million.

Redemption opens once the pool exceeds $5 million. Users can redeem at any time, but early redemption forfeits remaining claims. Holders who wait may benefit as the pool grows. The Insurance Fund remains intact and will be subject to governance voting. Additionally, Drift will relaunch in Q2 2026 with key changes: new program addresses, rotated keys, community-based multisig, removal of durable nonces and Earn products, and comprehensive opsec overhaul.

See announcement: https://www.drift.trade/updates/recovery-plan-for-affected-users

Morgan Stanley launches crypto trading on E*Trade

Morgan Stanley has launched cryptocurrency trading services on its ETrade platform, marking a significant expansion of digital asset offerings from a major traditional financial institution. The new service allows ETrade's millions of retail investors to buy, sell, and hold Bitcoin and Ethereum directly through their existing brokerage accounts.

This move positions Morgan Stanley alongside competitors like Fidelity and Robinhood in offering direct crypto access to retail clients. E*Trade, which Morgan Stanley acquired in 2020 for $13 billion, had previously only offered crypto futures trading to select clients.

The integration simplifies crypto investing for mainstream investors who can now manage traditional securities and digital assets in one place. Morgan Stanley joins a growing list of traditional finance giants entering crypto space, following spot Bitcoin ETF approvals earlier in 2026.

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

Coinbase cuts 14% staff and 7-hour outage

Coinbase announced it would lay off approximately 14% of its workforce, affecting around 680 employees, as part of a broader restructuring effort to reduce operating expenses. The exchange cited the need to streamline operations amid challenging market conditions and tighter regulatory scrutiny in the United States.

Despite the significant workforce reduction, capital markets responded with notable indifference. Coinbase shares (COIN) closed nearly flat on the day of the announcement, suggesting investors viewed the cost-cutting measures as expected given the prolonged crypto winter.

However, the exchange faced a major operational incident shortly after. Coinbase experienced a prolonged outage lasting approximately 7 hours, during which users were unable to access their accounts or execute trades. The company attributed the disruption to technical issues unrelated to the layoffs. The timing sparked criticism on social media, with some users questioning the exchange's operational resilience during critical periods.

About 1Token:

1Token is a digital asset investment management platform providing Crypto PMS, RMS, and Portfolio Accounting Software, managing over $20 billion in assets for more than 100 clients worldwide.

All-in-one support designed for allocators, portfolio managers, treasury managers and fund operations and accountants, seeking transparency and control.

• Front office (portfolio managers and traders) to view live position and exposure, calculate trading PnL and historical performance.
• Middle office (ops and risk) to maintain portfolios and API accounts, book OTC trades, monitor risk metrics and analyze VaR/STV, generate shadow NAV with investor subscription/redemption/dividend.
• Back office (admin and auditors) to collect and reconcile trades, generate valuation and PnL reporting under FIFO/WAC tax strategy.