Morgan Stanley has confirmed plans to introduce cryptocurrency trading for retail customers on its E*Trade platform in the first half of 2026, partnering with digital asset infrastructure provider Zerohash.
Wall Street institutions have made few commitments this large to integrate digital assets into everyday brokerage accounts.
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Morgan Stanley Launches Retail Crypto Trading
Morgan Stanley announced on September 23 that it would partner with Zerohash to launch a crypto trading program for E*Trade clients, scheduled to begin in the first half of 2026.
Under the agreement, E*Trade customers will initially be able to trade Bitcoin, Ethereum, and Solana directly on the platform. Morgan Stanley executives emphasized that the service will integrate fully. Users will get a single dashboard for both digital and traditional assets.
He added that the launch represents a natural evolution of the bank’s earlier experiments with Bitcoin funds and spot ETF access.
The partner, Zerohash, which recently crossed a $1 billion valuation following a $104 million fundraising round, will handle custody and settlement. The Chicago-based startup already provides infrastructure to several fintechs and brokerages, offering banks a way to deploy crypto trading without building in-house systems.
The initiative comes as traditional brokerages face mounting pressure to adapt. Rivals such as Robinhood already generate significant revenue from crypto trades, while Interactive Brokers and Charles Schwab are expanding their exposure through funds and derivatives.
Analysts say Morgan Stanley’s step into direct token trading could reshape competitive dynamics across the wealth management sector.
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Tokenization Could Reshape Wealth Management
The bank has also hinted at future wallet services that could hold not only cryptocurrencies but tokenized versions of traditional assets, including bonds, equities, and real estate. Tokenization, or creating digital representations of assets on blockchain, is expected to enhance liquidity, enable faster settlement, and allow investors to manage both digital and traditional holdings seamlessly.
Such offerings, if realized, would position Morgan Stanley at the forefront of blockchain-driven transformation in financial services.
Crypto markets remain volatile, yet the sheer size of digital asset capitalization—estimated near $3.9 trillion—makes them difficult for wealth managers to ignore. By embedding crypto trading and exploring tokenization within E*Trade, Morgan Stanley is betting that clients increasingly expect a seamless mix of both worlds, and that failing to deliver could mean losing the next generation of investors.
Morgan Stanley Shares Rise on Investor Confidence
Since the US government’s approach to cryptocurrency shifted after President Donald Trump took office, Morgan Stanley has been considered among the most proactive major banks in embracing digital assets.
On the day, Morgan Stanley shares rose as much as 1.93% to $163.8 in early trading before retreating to their opening level, ultimately closing the session unchanged. Year-to-date, the stock has gained 27.8%, reflecting strong investor confidence.
Morgan Stanely stock performance YTD / Source: Google FinanceSource: https://beincrypto.com/morgan-stanley-accelerates-wall-streets-crypto-trading-with-etrade-integration/
