Morgan Stanley to Launch Crypto Trading via E-Trade in Early 2026
Morgan Stanley is poised to introduce cryptocurrency trading to retail investors through its E-Trade platform by the first half of 2026. This strategic move signals the Wall Street giant’s commitment to integrating digital assets into mainstream wealth management services.
The bank is collaborating with fintech startup Zerohash, in which it holds an investment stake, to provide liquidity, custody, and settlement solutions for the upcoming crypto trading offering, according to an internal memo reviewed by CNBC.
Strategic Context and Market Positioning
Jed Finn, Morgan Stanley’s Head of Wealth Management, outlined in the memo that the firm is “well underway” with preparations to roll out crypto trading through a partner model to E-Trade clients. Wealth management contributed nearly half of Morgan Stanley’s total revenue last year, underscoring the importance of this segment to the company’s overall business strategy.
Unlike the initial wave of crypto adoption by major banks around four years ago—when institutions like Morgan Stanley and Goldman Sachs offered bitcoin funds to high-net-worth clients—this new initiative will provide direct ownership of cryptocurrencies. This approach eliminates certain third-party management fees but introduces higher risk profiles.
Initial Cryptocurrency Offerings
The initial crypto assets available for trading will include bitcoin, ether, and Solana, according to Bloomberg News. This selection reflects Morgan Stanley’s focus on established and high-liquidity digital currencies.
Finn emphasized the expectation that affluent clients will increasingly demand integrated management of both traditional and digital assets within a unified platform.
Developing Digital Asset Custody Solutions
As part of its broader digital asset strategy, Morgan Stanley is developing a proprietary wallet to serve as the custodian for clients’ cryptocurrencies. Custody is a critical component for institutional-grade crypto services, providing security and regulatory compliance.
“Offering clients the ability to trade crypto is the tip of the iceberg,” said Jed Finn.
Tokenized Assets: The Next Frontier
The memo also highlights Morgan Stanley’s vision for tokenized versions of traditional financial assets such as cash, stocks, bonds, and real estate. Tokenization involves creating digital representations of these assets on a blockchain, enabling more efficient management and transfer.
Finn described tokenization as a transformative force that will “significantly disrupt” wealth management. Tokenized cash substitutes, for example, can begin accruing interest immediately upon deposit into a digital wallet, with other asset classes expected to follow.
He further noted the broader potential of distributed ledger technology (DLT) beyond crypto investment, encompassing efficiencies in asset management and client service.
FinOracleAI — Market View
Morgan Stanley’s planned introduction of direct crypto trading for retail investors via E-Trade represents a significant milestone in the convergence of traditional finance and digital assets. The bank’s approach—partnering with Zerohash and developing in-house custody solutions—positions it to capitalize on growing client demand for integrated asset management.
Tokenization of traditional assets further extends the firm’s innovation horizon, potentially reshaping wealth management through enhanced liquidity, operational efficiency, and novel investment products.
- Opportunities: Expanded client base engagement, diversified revenue streams, and enhanced competitive positioning in digital asset markets.
- Risks: Regulatory uncertainty, cybersecurity challenges, and market volatility inherent in cryptocurrency trading.
- Strategic Implication: Early adoption and infrastructure investment may yield long-term advantages in an evolving financial ecosystem.
Impact: Morgan Stanley’s crypto trading launch is a positive development for the wealth management sector, signaling increased mainstream acceptance and integration of digital assets.
