Morgan Stanley, one of Wall Street’s most storied financial institutions, has officially announced it will launch cryptocurrency trading on its ETrade platform in the first half of 2026. The move represents a watershed moment for both traditional finance and the burgeoning digital asset industry, as it signals a deepening embrace of cryptocurrencies by mainstream players. Industry insiders and investors alike are watching closely, recognizing that Morgan Stanley’s entry could reshape the competitive landscape and further legitimize digital assets as a core component of modern portfolios.
The decision, confirmed by Morgan Stanley on September 23, 2025, follows months of speculation and internal planning, as reported by outlets including Bloomberg and The Information. The bank’s announcement comes at a time of increasing client demand for exposure to cryptocurrencies, as well as a regulatory environment that has grown notably more accommodating. In September, the SEC and CFTC jointly declared they would not block regulated exchanges from listing crypto trading products, a move widely interpreted as a green light for major financial institutions to expand into digital assets.
“We are well underway in preparing to offer crypto trading through a partner model to ETrade clients in the first half of 2026,” stated Jed Finn, head of wealth management at Morgan Stanley, in an internal memo cited by Brave New Coin. This timeline gives ETrade’s millions of customers a clear expectation of when they can access the new service, while affording the bank ample time to ensure a smooth and secure rollout.
At launch, ETrade customers will be able to buy and sell three of the world’s most prominent cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). These coins were chosen for their liquidity, market capitalization, and established track record. According to Market Minute, the selection is a strategic one, designed to minimize volatility risks and provide customers with access to the most widely used digital assets.
To power its new offering, Morgan Stanley has partnered with Zerohash, a leading digital asset infrastructure provider. Zerohash will handle critical backend functions such as liquidity provision, custody, and settlement, allowing Morgan Stanley to leverage specialized technology without building its own crypto infrastructure from scratch. The partnership model also helps reduce regulatory risk for the bank, as it can rely on Zerohash’s expertise and compliance protocols.
Zerohash itself has made headlines recently, having achieved “unicorn” status after raising $104 million in a Series D-2 funding round led by Interactive Brokers, with participation from Morgan Stanley, SoFi, and other financial heavyweights. The investment underscores Morgan Stanley’s commitment to the crypto space, not just as a service provider but also as a backer of the underlying technology that makes large-scale digital asset trading possible.
This isn’t Morgan Stanley’s first foray into crypto. Since August 2024, the bank has permitted its wealth advisors to recommend spot Bitcoin exchange-traded funds (ETFs) to eligible clients, further signaling its methodical approach to digital asset integration. Earlier in 2025, CEO Ted Pick told the World Economic Forum in Davos that Morgan Stanley was “actively exploring the transactional side of crypto,” hinting at broader ambitions beyond ETFs and now confirmed by the ETrade announcement.
Industry observers see Morgan Stanley’s move as part of a broader trend: the mainstreaming of cryptocurrencies within traditional finance. The Trump administration’s pro-crypto stance and legislative efforts—such as the GENIUS Act, which provides a regulatory framework for stablecoin issuers—have created a more predictable environment for banks and asset managers to enter the market. According to Impakter, the total cryptocurrency market has swelled to nearly $4 trillion, and Wall Street’s growing participation is only accelerating that growth.
Competition is heating up. ETrade’s crypto trading will enter a market already served by platforms like Robinhood, which recently expanded its crypto offerings to include Bitcoin and Ethereum futures. Robinhood’s shares fell by approximately 4% on the news of Morgan Stanley’s entry, while Morgan Stanley’s own stock saw a nearly 2% bump, reflecting investor optimism about the bank’s strategic positioning. Meanwhile, established crypto exchanges like Coinbase experienced a slight uptick, as institutional validation often brings new users to the entire ecosystem.
For ETrade’s retail investors, the integration of crypto trading means they can manage both traditional and digital assets from a single account—no need for separate crypto exchange logins or wallets. This ease of access is expected to attract new customers, particularly those who have been wary of the technical and regulatory uncertainties surrounding standalone crypto platforms. Morgan Stanley’s reputation for regulatory compliance and security may appeal to more conservative investors who have so far sat on the sidelines.
The partnership with Zerohash is also notable for its potential to set a precedent. By working with a specialized infrastructure provider, Morgan Stanley can offer crypto services while mitigating some of the technical and compliance challenges that have deterred other banks. This model could become a blueprint for other financial institutions looking to enter the space, especially as regulatory clarity continues to improve.
Jed Finn described the initial rollout as “phase one” of a much broader digital asset strategy. Morgan Stanley envisions future offerings that could include full-fledged wallet solutions and even the tokenization of traditional assets like cash, stocks, bonds, and real estate. Such innovations could unlock efficiencies across the financial system, further blurring the lines between traditional and digital finance.
The move has implications beyond just Morgan Stanley and its clients. As more major banks follow suit, the competitive pressure on other brokerages—such as Charles Schwab and Fidelity—to expand their own crypto offerings is likely to intensify. This could lead to a rapid proliferation of digital asset services across the industry, benefiting consumers with more choices and potentially lower fees.
Regulatory clarity remains crucial. The Trump administration’s supportive stance and recent SEC and CFTC announcements have provided a foundation for institutional participation, but any unexpected regulatory headwinds or security breaches could temper enthusiasm. For now, the trend appears clear: digital assets are moving from the fringes to the center of the financial world.
As the first half of 2026 approaches, all eyes will be on Morgan Stanley and ETrade’s crypto rollout. The market will be watching for robust trading volumes, user adoption rates, and the bank’s ability to deliver a seamless experience. The success of this initiative could serve as a blueprint for others, potentially ushering in an era where digital assets are as commonplace in investment portfolios as stocks and bonds.
Morgan Stanley’s decision is more than a business move—it’s a signal that cryptocurrencies have arrived in the mainstream, with the power to transform how millions invest, save, and interact with the financial system.
