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Morgan Stanley is gearing up to launch cryptocurrency trading for retail customers on its E*Trade platform, representing a notable advancement by a Wall Street institution into Bitcoin and digital currencies.
The bank will collaborate with cryptocurrency infrastructure provider Zerohash to deliver liquidity, custody, and settlement, as reported by Bloomberg.
Trading is anticipated to commence in the first half of 2026, initially offering Bitcoin, Ethereum, and Solana.
In essence, Morgan Stanley aims not solely to enable customers to purchase Bitcoin. It seeks to be the platform where conventional and digital assets coexist within the same account.
Morgan Stanley revealed intentions earlier this year to incorporate spot Bitcoin and cryptocurrency trading on its E*Trade platform sometime in 2026, though it did not disclose details on timing and infrastructure.
‘Just the beginning’
Jed Finn, Morgan Stanley’s chief of wealth management, characterized the action as a “revolutionary moment” for the sector.
“Providing clients with the chance to trade crypto is just the beginning,” Finn noted, emphasizing the firm’s ultimate objective to develop a comprehensive wallet solution for asset custody and tokenization, according to CNBC coverage.
The timing signifies a larger transition in regulatory attitude under the Trump administration, which has paved the way for banks to broaden their activities into crypto markets.
Rivals such as Charles Schwab are investigating similar services, while Robinhood has long enjoyed the benefits — generating over $600 million from cryptocurrency trading last year, approximately one-fifth of its total revenue.
Morgan Stanley is not merely providing trading access. It is also making direct investments in Zerohash, which recently secured $104 million at a $1 billion valuation. This investment offers the bank a foothold in the infrastructure tier of crypto markets as well.
Finn also highlighted that the bank is investigating tokenization, which involves using blockchain technology to create digital representations of traditional assets like stocks, bonds, and cash, as a means to modernize back-office processes.
Tokenized currency, for example, could begin earning interest immediately upon entering a wallet. In simpler terms: rather than your funds remaining inactive, they start generating value for you the moment you acquire them.
The firm also intends to unveil a crypto-inclusive asset allocation strategy in the forthcoming weeks, with recommended portfolio allocations varying from none to a few percentage points based on client objectives, according to reports.
For Bitcoin proponents, even a minor allocation from a bank as substantial as Morgan Stanley marks a significant move toward broader acceptance.
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