Morgan Stanley is preparing to deploy crypto trading for retail clients on the E*Trade platform, making a major leap from Wall Street banks to Bitcoin and digital assets.
According to a Bloomberg report, the bank will work with cryptocurrency infrastructure provider ZeroHash to provide liquidity, custody and settlement.
The transaction is expected to be released in the first half of 2026, starting with Bitcoin, Ethereum and Solana.
In other words, Morgan Stanley doesn’t just want customers to buy Bitcoin. I want to be a place where traditional and digital assets sit side by side in the same account.
Morgan Stanley announced earlier this year plans to add spot Bitcoin and crypto trading to the E* trade platform sometime in 2026, but did not share details on timing and infrastructure.
“The tip of the iceberg”
Jed Finn, head of wealth management at Morgan Stanley, framed the move as a “transformational moment” for the industry.
“Providing clients with the ability to exchange crypto is the tip of the iceberg,” Finn said, adding that he plans to ultimately build a complete wallet solution for the custody and decoration of the assets.
The timing reflects a broader shift in regulatory stance under the Trump administration, revealing how banks can expand into the crypto market.
Competitors like Charles Schwab are exploring similar products, but Robinhood has long been rewarding. Last year, it drew more than $600 million from Crypto Trading, which is about a fifth of its total revenue.
Morgan Stanley doesn’t just provide trading access. It also invests directly in Zerohash, raising $104 million at a $1 billion valuation. The stock also gives banks a foothold on the infrastructure layer of the crypto market.
Finn also highlighted that banks are investigating tokenization. This is the process of using blockchain to create digital versions of traditional assets such as stocks, bonds, cash, and more, as a way to modernize back-office operations.
For example, tokenized cash can start to attract attention as soon as you reach your wallet. In plain English: Instead of your money sitting idle, it starts working for you the second you received it.
The company is also planning to launch a crypto-allocation strategy in the coming weeks, with reports suggesting portfolio allocations ranging from zero to several percentage points depending on client goals.
For Bitcoin advocates, even small allocations from banks on the size of Morgan Stanley represent a major step towards mainstream adoption.
Source: https://bitcoinmagazine.com/news/morgan-stanley-to-enable-bitcoin-trading-for-etrade-clients-in-first-half-of-2026
