Wall Street Giant Enters Crypto: Morgan Stanley to Enable Trading via E*Trade
Morgan Stanley is preparing to roll out cryptocurrency trading for retail clients on its E*Trade platform, marking a significant leap by a Wall Street bank into Bitcoin and digital assets. According to a Bloomberg report, the bank will partner with crypto infrastructure provider Zerohash for liquidity, custody, and settlement.
Trading is expected to go live in the first half of 2026, beginning with Bitcoin, Ethereum, and Solana. This means Morgan Stanley not only wants to let customers buy Bitcoin but also aims to let traditional and digital assets sit side by side in the same account. The bank had earlier announced plans to add spot Bitcoin and crypto trading to E*Trade in 2026 but didn't share specifics on timing and infrastructure.
'Tip of the Iceberg': From Trading to Wallet and Tokenization
Jed Finn, Morgan Stanley's head of wealth management, framed the move as a 'transformative moment' for the industry. 'Offering clients the ability to trade crypto is the tip of the iceberg,' Finn said, adding that the firm ultimately plans to build a full wallet solution for custody and tokenization of assets, according to CNBC reporting.
The timing reflects a broader shift in regulatory posture under the Trump administration, which has cleared the way for banks to expand into crypto markets. Competitors like Charles Schwab are exploring similar offerings, while Robinhood has long reaped the rewards — pulling in more than $600 million from crypto trading last year, about one-fifth of its total revenue.
Morgan Stanley isn't just offering trading access. It's also investing directly in Zerohash, which recently raised $104 million at a $1 billion valuation. That stake gives the bank a foothold in the infrastructure layer of crypto markets as well.
Finn also emphasized that the bank is exploring tokenization, the process of using blockchain to create digital versions of traditional assets like stocks, bonds, and cash, as a way to modernize back-office operations. Tokenized cash, for example, could begin accruing interest instantly when it lands in a wallet. In plain English: instead of your money sitting idle, it starts working for you the second you receive it.
Asset Allocation Strategy and Industry Significance
The firm also plans to launch a crypto-inclusive asset allocation strategy in the coming weeks, with suggested portfolio allocations ranging from zero to a few percentage points depending on client goals, according to reports. For Bitcoin advocates, even a small allocation from a bank the size of Morgan Stanley represents a major step toward mainstream adoption.
This development shows that traditional financial institutions are accelerating their embrace of digital assets. Crypto infrastructure, regulatory clarity, and client demand are maturing. Morgan Stanley's entry could trigger a wave of similar moves by other Wall Street banks, further propelling crypto into mainstream portfolios.