TLDR
- Morgan Stanley will offer crypto trading through E-Trade, starting with Bitcoin, Ether, and Solana.
- The bank collaborates with Zerohash for liquidity, custody, and settlement solutions.
- Morgan Stanley aims to create a full digital wallet for crypto and tokenized assets.
- Tokenization of assets is a key part of Morgan Stanley’s strategy for future wealth management.
Morgan Stanley is preparing to offer retail customers the ability to trade cryptocurrencies through its E-Trade platform. The move comes as part of a broader strategy to integrate digital assets with traditional wealth management. Scheduled to launch in the first half of 2026, this initiative will initially support trading in Bitcoin, Ether, and Solana. The integration of cryptocurrencies into E-Trade reflects a significant step for the bank, which has historically been conservative about digital asset offerings.
According to Jed Finn, Morgan Stanley’s Head of Wealth Management, the move is part of the bank’s vision for the future of wealth management. He described this as a transformative moment for the industry, signaling the beginning of broader crypto adoption by traditional financial institutions. The ability to offer crypto trading directly to retail investors through E-Trade aligns with Morgan Stanley’s long-term strategy to integrate both traditional and digital assets into a single platform.
Morgan Stanley Partners with Zerohash for Crypto Trading
To facilitate the crypto trading service, Morgan Stanley has partnered with Zerohash, a startup that provides liquidity, custody, and settlement solutions for digital assets. This partnership is crucial in ensuring that the bank’s clients can trade cryptocurrencies securely and efficiently.
Zerohash will handle the backend infrastructure, ensuring that trades are executed smoothly and that custody solutions meet regulatory requirements.
The collaboration with Zerohash also includes Morgan Stanley’s investment in the company, solidifying its involvement in the cryptocurrency infrastructure space. This partnership underscores the bank’s commitment to adopting digital asset solutions and its belief in the long-term potential of blockchain technology in finance.
Role of Tokenization in Morgan Stanley’s Strategy
Morgan Stanley’s plans for E-Trade go beyond simple crypto trading. The bank is also exploring tokenization, the process of converting traditional assets like stocks, bonds, and real estate into digital representations on the blockchain. Finn emphasized that tokenization could “significantly disrupt” wealth management by offering more efficient and flexible ways to manage assets.
For example, tokenized cash could start earning interest immediately upon landing in a wallet, bypassing the need for traditional banking processes.
This shift could lead to greater efficiency in the back-office operations of wealth management and bring new investment opportunities to retail clients. The bank’s plans include not only offering crypto trading but also creating a comprehensive digital wallet solution that integrates both traditional and digital assets.
Broader Crypto Adoption by Traditional Financial Institutions
Morgan Stanley’s move to offer crypto trading on E-Trade is part of a larger trend of traditional financial institutions embracing digital assets. The bank’s decision to expand into crypto trading follows a broader shift in regulatory attitudes toward cryptocurrency, particularly since the election of President Donald Trump.
The regulatory environment has become more favorable, allowing banks like Morgan Stanley to expand their offerings to include digital assets.
Competitors such as Charles Schwab are also exploring similar offerings, and fintech companies like Robinhood have already benefited significantly from crypto trading. Robinhood, for instance, reported over $600 million in crypto trading revenue last year. As digital assets become more mainstream, financial institutions are looking to integrate them into their wealth management services.
