Morgan Stanley is preparing to launch spot Bitcoin and cryptocurrency trading on its E*Trade platform in the first half of 2026. The move will give millions of retail clients direct access to digital assets through their brokerage accounts, marking one of Wall Street’s boldest steps into crypto.
The initiative comes amid a regulatory environment more favourable to banks under the Trump administration and it underscores the growing convergence of traditional finance and digital assets.
Direct Access to Bitcoin, Ethereum and Solana
According to Bloomberg, trading on E*Trade will begin with three cryptocurrencies: Bitcoin, Ethereum and Solana. By offering these assets within a familiar brokerage interface, Morgan Stanley aims to place digital assets alongside traditional securities such as stocks and bonds in a single account.
The bank will rely on crypto infrastructure provider Zerohash for liquidity, custody and settlement. E*Trade users will be able to trade digital assets just as they do equities, making crypto access straightforward for retail investors who may not want to navigate separate exchanges or wallets.
This integration sets Morgan Stanley apart from peers, as it positions digital assets as part of a complete wealth management solution rather than a stand-alone product.
Partnership and Strategic Investment in Zerohash
Morgan Stanley is not only partnering with Zerohash but also investing directly in the company. Zerohash recently raised $104 million at a $1 billion valuation, with Morgan Stanley participating in the round alongside Interactive Brokers, SoFi, Jump Trading and Apollo Global Management.
The investment ensures that Morgan Stanley has a foothold in the infrastructure powering crypto trading, custody and settlement. By strengthening ties with Zerohash, the bank secures access to the underlying technology layer of digital asset markets.
This approach mirrors strategies used in equities and derivatives markets, where control over infrastructure can offer both stability and competitive advantage.
Beyond Trading: Tokenisation and Wallet Plans
Jed Finn, Morgan Stanley’s head of wealth management, described the initiative as a “transformative moment” and hinted that trading is only the starting point. He noted that the firm plans to build a comprehensive wallet solution for custody and tokenisation of assets.
Tokenisation, converting traditional assets such as stocks, bonds or cash into blockchain-based digital equivalents, is seen as a way to modernise settlement systems and increase efficiency. Tokenised cash, for example, could begin accruing interest immediately upon receipt, eliminating settlement lags.
Morgan Stanley also intends to roll out crypto-inclusive asset allocation strategies, recommending small portfolio allocations to digital assets depending on client goals. For Bitcoin advocates, even a modest allocation from a $1.3 trillion bank signals a step towards mainstream acceptance.
Shifting Wall Street Landscape
The timing of Morgan Stanley’s move reflects broader changes across Wall Street. Charles Schwab is exploring similar offerings, while Robinhood has already benefited substantially from retail crypto trading, pulling in more than $600 million in revenue from the segment last year.
At the same time, traditional financial institutions are forming deeper crypto partnerships. JPMorgan Chase, for instance, recently linked up with Coinbase to allow Chase customers to make crypto purchases with credit cards and redeem rewards, starting in 2026.
These developments suggest that cryptocurrency is moving beyond niche adoption and towards integration into mainstream financial systems. If demand continues to rise, digital assets may soon be treated less as speculative instruments and more as a standard part of diversified portfolios.
Looking Ahead
By enabling crypto trading for retail investors on E*Trade, Morgan Stanley is breaking new ground for Wall Street banks. The partnership with Zerohash ensures robust infrastructure, while the bank’s investment in tokenisation signals its intent to reshape how traditional and digital assets coexist.
The move underscores a growing trend: cryptocurrency is no longer peripheral to financial markets. With regulatory clarity improving and major banks moving in, digital assets are on a trajectory toward mainstream inclusion.
For retail investors, this integration means a future where stocks, bonds, cash and cryptocurrencies are accessible in a single, trusted platform, an evolution that could redefine the very nature of brokerage services.
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