Morgan Stanley to Launch Retail Crypto Trading on E*Trade by 2026

Morgan Stanley is set to become one of the first major Wall Street institutions to offer cryptocurrency trading directly to retail customers through its E*Trade platform. The bank confirmed on September 23 that it will partner with digital asset infrastructure provider Zerohash to roll out crypto trading in the first half of 2026.

The initiative will initially allow E*Trade clients to buy and sell Bitcoin, Ethereum, and Solana within their existing brokerage accounts. Executives emphasized that the service will fully integrate digital assets with traditional investments, offering a single dashboard where users can manage stocks, bonds, ETFs, and cryptocurrencies side by side.

Jed Finn, head of Morgan Stanley Wealth Management, described the move as a natural extension of the firm’s earlier work with Bitcoin funds and spot ETF access. “Clients expect unified access to every major asset class, and crypto is no longer an exception,” he stated in an internal memo.

Zerohash, which recently reached a $1 billion valuation after raising $104 million, will provide custody and settlement services. The Chicago-based company already powers crypto infrastructure for fintechs and brokerages, enabling banks like Morgan Stanley to deploy trading services without building complex systems in-house.

The decision comes amid increasing competition from rivals such as Robinhood, Charles Schwab, and Interactive Brokers, all of which are expanding their crypto offerings. Analysts suggest Morgan Stanley’s entry into direct token trading could shift competitive dynamics in wealth management.

Looking ahead, the bank has also signaled interest in tokenization—the process of representing traditional assets like bonds, equities, and real estate on blockchain. Executives believe tokenized securities could improve liquidity, reduce settlement times, and enable seamless integration with digital wallets.

The announcement boosted investor confidence, with Morgan Stanley shares briefly rising 1.93% to $163.80 before closing flat. Year-to-date, the stock is up 27.8%, reflecting optimism about its digital asset strategy.

With global crypto markets valued at nearly $3.9 trillion, Morgan Stanley is betting that the next generation of investors expects unified access to both traditional and digital finance—and intends to deliver.