Morgan Stanley has confirmed its plans to introduce cryptocurrency trading to retail customers on its E* trade platform in the first half of 2026 and is partnering with digital asset infrastructure provider Zerohash.
Wall Street institutions have made so many commitments to integrate digital assets into everyday securities accounts.
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Morgan Stanley launches retail crypto trading
Morgan Stanley announced on September 23 that it will partner with Zerohash to launch a crypto trading program for E* trade clients, scheduled to begin in the first half of 2026.
Under the agreement, E*Trade customers will initially be able to trade Bitcoin, Ethereum and Solana directly on the platform. Morgan Stanley executives emphasized that the services will be fully integrated. Users get a single dashboard for both digital and traditional assets.
“Clients expect unified access to all key asset classes, and cryptography is no longer an exception,” said Jed Finn, head of Morgan Stanley Wealth Management, in an internal memo.
He added that the launch represents a natural evolution of the bank’s previous experiments on Bitcoin funds and Spot ETF access.
Zero Hash, a partner who recently surpassed the $1 billion valuation following a $104 million funding round, will handle custody and settlements. The Chicago-based startup already provides infrastructure to several fintechs and brokerages, providing banks with a way to deploy crypto transactions without building an internal system.
This initiative is because traditional brokerages face pressure to adapt. Rivals such as Robinhood have already generated significant revenue from crypto transactions, while interactive brokers and Charles Schwab are expanding their exposure through funds and derivatives.
Analysts say Morgan Stanley’s step into direct token trading could potentially reshape competitive dynamics across the wealth management sector.
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Tokenization can restructure wealth management
Banks also suggest future wallet services that can hold tokenized versions of traditional assets such as bonds, stocks and real estate, as well as cryptocurrencies. Tokenization, or creating a digital representation of assets on the blockchain, is expected to increase liquidity, enable faster payments, and allow investors to seamlessly manage both digital and traditional holdings.
“Cash tokenized alternatives start paying interest as soon as they hit your wallet,” Finn said. “The remaining asset classes will continue to litigate in seeking this efficiency.”
Such a provision, if realized, would place Morgan Stanley at the forefront of blockchain-driven transformation in financial services.
The crypto market remains volatile, but the enormous size of digital asset capital (which remains close to $3.9 trillion) is hard for wealth managers to ignore. By embedding crypto transactions and exploring tokenization within e* trade, Morgan Stanley is betting that clients are increasingly expecting a seamless mix of both worlds, and that failing to offer could mean losing the next generation of investors.
Morgan Stanley shares investors’ trust
With the US government’s approach to cryptocurrency changing after President Donald Trump took office, Morgan Stanley has been considered one of the most aggressive major banks when adopting digital assets.
On the day, Morgan Stanley rose 1.93% to $163.8 in early trading, up 1.93% to $163.8 before retreating to opening levels. Since the start of the year, the stock has won 27.8%, reflecting strong investors’ confidence.
