Morgan Stanley, one of Wall Street’s largest banks with over $1.3 trillion in assets under management, is preparing to introduce spot Bitcoin and crypto trading for retail clients through its E*Trade platform. The move, expected in the first half of 2026, represents a major step in the integration of digital assets into mainstream finance.
The bank will partner with crypto infrastructure provider ZeroHash to handle liquidity, custody and settlement, giving retail investors access to Bitcoin, Ethereum and Solana directly from their brokerage accounts.
A New Era for Retail Investors
The launch marks one of the boldest pushes by a traditional bank into digital assets. E*Trade clients, who are accustomed to trading equities and ETFs, will soon be able to buy and hold leading cryptocurrencies alongside their traditional investments.
In practical terms, this means retail traders will no longer need to rely on separate crypto exchanges to gain exposure to digital assets. Instead, crypto and stocks will sit side by side in the same account, bridging two previously distinct financial worlds.
Jed Finn, Morgan Stanley’s head of wealth management, described the decision as a “transformative moment” for the industry, saying that the ability to trade crypto was “the tip of the iceberg.” The firm is also developing a full wallet solution, giving clients secure custody and paving the way for tokenised assets in the future.
Strategic Partnership with ZeroHash
To ensure a smooth rollout, Morgan Stanley is not just partnering with ZeroHash but also investing directly in the company. ZeroHash, which recently raised $104 million at a $1 billion valuation, will provide the trading and settlement infrastructure.
Morgan Stanley’s stake in ZeroHash signals that the bank wants influence not only in offering crypto to clients but also in shaping the underlying infrastructure. Interactive Brokers will lead the funding round, with additional investment from SoFi, Jump Trading and Apollo Global Management Funds.
This approach contrasts with earlier experiments by banks that relied solely on third-party providers. By embedding itself into the infrastructure layer, Morgan Stanley is seeking both long-term control and competitive advantage.
Tokenisation and Future Plans
Beyond trading access, the bank is actively exploring tokenisation, the process of representing traditional assets like cash, bonds, or stocks on the blockchain. Tokenised cash, for instance, could begin earning interest the moment it lands in a wallet, a feature traditional systems cannot offer.
Finn highlighted that tokenisation could modernise back-office operations, making settlement faster and more efficient. This aligns with a broader industry trend, as banks worldwide investigate how blockchain can cut costs and improve capital efficiency.
Additionally, Morgan Stanley plans to introduce a crypto-inclusive asset allocation strategy, offering portfolio recommendations that range from zero to a small percentage allocation depending on client goals. Even modest exposure from an institution of Morgan Stanley’s size could accelerate mainstream adoption of Bitcoin and other digital assets.
Regulatory Shifts and Market Competition
The timing of the launch coincides with a friendlier regulatory climate in the United States under the Trump administration. This shift has encouraged major banks to expand into crypto markets after years of hesitation.
Competitors are already moving in the same direction. Charles Schwab is exploring similar offerings, while Robinhood has long benefitted from early adoption, generating more than $600 million in crypto trading revenue last year, roughly one-fifth of its total revenue. JPMorgan has also deepened ties with Coinbase, enabling Chase credit card holders to make crypto purchases and link their bank accounts directly to Coinbase from 2026.
These developments highlight a broader institutional shift. Crypto is no longer treated as a niche investment but as an asset class with growing importance in retail and institutional portfolios alike.
Morgan Stanley’s decision to bring Bitcoin, Ethereum and Solana trading to E*Trade is more than just a new product launch. It is a signal that Wall Street is fully embracing digital assets as part of the financial mainstream. By coupling trading access with direct investment in infrastructure provider ZeroHash and long-term plans for tokenisation, the bank is positioning itself at the centre of the next wave of financial innovation.
For retail clients, this means crypto will soon sit alongside stocks and bonds in a single account. For the industry, it marks one of the clearest signs yet that the lines between traditional finance and digital assets are rapidly disappearing.
