Morgan Stanley to Launch Crypto Trading on E*Trade Platform in 2026

Recent regulatory developments have created a more favorable environment for crypto adoption. In September, the SEC and CFTC announced they would not block regulated exchanges from listing crypto trading products, making it easier for major exchanges to trade Bitcoin and other digital currencies. This regulatory clarity has encouraged more traditional financial institutions to explore crypto services.

Partnership with Zerohash Powers New Service

Morgan Stanley will launch its crypto trading service through a partnership with Zerohash, a digital asset infrastructure provider. This partnership approach allows the bank to offer crypto services while relying on specialized technology from a dedicated crypto company.

Source: @ZeroHashX

Zerohash recently achieved unicorn status after raising $104 million in a funding round. Interactive Brokers led the investment, with Morgan Stanley, SoFi, and other financial companies participating. This investment shows Morgan Stanley’s commitment to the crypto space beyond just offering trading services.

The partnership model reduces regulatory risks for traditional banks while still allowing them to enter the growing cryptocurrency market. By working with established crypto infrastructure providers, banks can offer these services without building everything from scratch.

Bitcoin, Ethereum, and Solana Available at Launch

E*Trade customers will initially be able to trade three major cryptocurrencies: Bitcoin, Ethereum, and Solana. These represent some of the largest and most established digital assets in the market.

Bitcoin remains the world’s largest cryptocurrency by market value. Ethereum serves as the foundation for many decentralized applications and smart contracts. Solana has gained popularity as a faster alternative blockchain platform.

The choice to start with these three coins suggests Morgan Stanley wants to begin with the most liquid and well-established cryptocurrencies. This approach may help reduce volatility risks and ensure customers can easily buy and sell their digital assets.

Timeline and Internal Communications

Jed Finn, head of wealth management at Morgan Stanley, confirmed the timeline in an internal memo. He stated the bank is “well underway in preparing to offer crypto trading through a partner model to E-Trade clients in the first half of 2026.”

The announcement builds on earlier reports from May 2024 that suggested E*Trade planned to add cryptocurrency trading capabilities. This shows the bank has been working on these plans for over a year, demonstrating a methodical approach to entering the crypto market.

The specific timeline of first half 2026 gives E*Trade customers a clear expectation of when they can access these services. It also provides the bank with enough time to properly test and implement the new trading features.

Wall Street’s Growing Crypto Embrace

Morgan Stanley’s announcement reflects a broader trend of traditional financial institutions moving into cryptocurrency services. The Trump administration’s supportive stance toward digital assets has encouraged more banks to explore crypto offerings.

Major financial institutions have become more comfortable with cryptocurrencies as regulatory clarity improves. The approval of Bitcoin exchange-traded funds earlier this year also signaled growing institutional acceptance of digital assets.

Morgan Stanley has also been building its crypto capabilities over time. Since August 2024, the bank has allowed its wealth advisers to actively pitch spot Bitcoin exchange-traded funds to eligible clients. Earlier this year, CEO Ted Pick mentioned at the World Economic Forum in Davos that the bank was exploring the transactional side of crypto.

Market Impact and Customer Access

The move will give millions of E*Trade customers direct access to cryptocurrency trading through their existing brokerage accounts. This integration makes it easier for retail investors to add digital assets to their portfolios without opening separate crypto exchange accounts.

E*Trade serves as one of the largest online brokerage platforms in the United States. Adding crypto trading capabilities could attract new customers who want both traditional investing and digital asset access in one place.

The service will compete with existing crypto exchanges and other traditional brokerages that already offer cryptocurrency trading. Robinhood recently expanded its crypto offerings with Bitcoin and Ethereum futures, positioning itself as a competitor to established players like Charles Schwab and E*TRADE. However, Morgan Stanley’s established reputation and regulatory compliance may appeal to more conservative investors who have avoided standalone crypto platforms.

The Road Ahead

Morgan Stanley’s entry into retail crypto trading represents a significant milestone for cryptocurrency adoption. When a major Wall Street bank offers direct crypto access to retail customers, it signals digital assets are becoming mainstream investment options.

The partnership approach with Zerohash may also become a model for other banks looking to enter the crypto space without taking on the full regulatory and technical challenges of building their own infrastructure.