Morgan Stanley is set to launch its own cryptocurrency trading service on the E*Trade platform in the first half of 2026, in partnership with digital asset infrastructure firm Zerohash. This move marks a significant step for a Wall Street bank in incorporating digital assets into mainstream brokerage services.
Upon its launch, E*Trade clients will have the ability to trade Bitcoin, Ethereum, and Solana, giving them access to a diverse range of cryptocurrencies. This decision comes as traditional financial institutions are increasingly looking to cater to the growing demand for crypto exposure among their clients.
Competitors such as Robinhood already offer a wide selection of tokens, while Charles Schwab has opted for a more cautious approach by providing access to exchange-traded funds tied to Bitcoin and Ethereum. Interactive Brokers, another player in the retail brokerage sector, has also expanded its crypto offerings, indicating a broader acceptance of digital assets across the industry.
The cryptocurrency market is currently valued at approximately $3.9 trillion, with Bitcoin accounting for a significant portion of that value. This market size has put pressure on established brokerages to adapt and offer clients alternative investment options to retain their business.
For Zerohash, the partnership with Morgan Stanley comes after a successful fundraising round that saw the company raise $104 million and achieve unicorn status. Interactive Brokers led the funding round, with support from other financial backers such as SoFi. Zerohash specializes in providing infrastructure that enables banks and fintech companies to offer crypto products without having to develop their own trading and custody systems.
The regulatory environment surrounding digital assets has become more favorable under the Trump administration, with regulators showing support for cryptocurrencies. This has encouraged Wall Street banks and asset managers to move beyond pilot programs and offer live crypto trading services to their clients.
The integration of crypto trading on E*Trade by Morgan Stanley underscores the evolution of digital assets from a niche experiment to a mainstream fixture in global finance. Both retail investors and institutions are increasingly recognizing the importance of incorporating cryptocurrencies into their investment portfolios.
In conclusion, the collaboration between Morgan Stanley, E*Trade, and Zerohash signals a significant shift in the financial industry towards embracing digital assets. This move reflects the changing landscape of finance and the growing demand for crypto trading services among investors.