Morgan Stanley is set to introduce cryptocurrency trading on its ETrade platform in the first half of 2026, marking a significant expansion of its digital asset offerings. This move will allow ETrade clients to trade Bitcoin, Ether, and Solana. The initiative reflects a growing trend among traditional financial institutions to embrace digital assets, driven by increasing market value and evolving regulatory attitudes.

The decision to integrate crypto trading into E*Trade is part of Morgan Stanley's broader strategy to incorporate digital assets into its wealth management services. Jed Finn, Head of Wealth Management at Morgan Stanley, views this as a "transformative moment" for the industry, signaling wider crypto adoption by traditional financial institutions. Morgan Stanley aims to create a unified platform where clients can access both traditional and digital assets.

To facilitate this new service, Morgan Stanley has partnered with Zerohash, a digital asset infrastructure provider. Zerohash will provide liquidity, custody, and settlement solutions, ensuring secure and efficient cryptocurrency trading for E*Trade clients. The partnership also involves Morgan Stanley investing in Zerohash, highlighting the bank's commitment to the cryptocurrency infrastructure space. Zerohash recently raised $104 million in a Series D-2 round, achieving a valuation of $1 billion.

The initial offering will focus on Bitcoin, Ether, and Solana. Bitcoin represents a substantial portion of the cryptocurrency market, followed by Ether. Solana is also a leading network for tokenization.

Morgan Stanley's plans extend beyond simple crypto trading. The firm intends to develop a comprehensive wallet solution for clients to store and manage their digital assets securely. This move aligns with the increasing interest in decentralized finance (DeFi) among traditional finance (TradFi) companies, with the goal of bringing assets like stocks, bonds, and treasuries onto the blockchain. Tokenization of assets is a key component of Morgan Stanley's future wealth management strategy.

The expansion into crypto trading follows a more favorable regulatory environment, particularly with the Trump administration's stance on digital assets. This has encouraged Wall Street brokerages to expand their crypto offerings. Competitors like Robinhood have already seen success with crypto trading, and Charles Schwab is exploring similar offerings.

ETrade, acquired by Morgan Stanley in 2020, has a large retail user base, making it a suitable platform for introducing crypto trading to a wider audience. Currently, ETrade offers indirect exposure to cryptocurrencies through exchange-traded products (ETPs), exchange-traded funds (ETFs), coin trusts, and futures. These instruments allow investors to gain exposure to cryptocurrencies without directly owning them.

Morgan Stanley's move into crypto trading reflects a broader shift in Wall Street's view of digital assets. The increasing market value of cryptocurrencies and the demand from investors have made it necessary for traditional brokerages to offer crypto-related services. As more firms enter the crypto space, a wider array of crypto products and increased trading activity are expected.