Morgan Stanley confirmed that it will launch cryptocurrency trading for retail clients via its ETrade platform in the first half of 2026.
This marks a significant step for the Wall Street giant in bridging traditional finance with digital assets, potentially unlocking access for millions of ETrade users over 5 million accounts to trade crypto alongside stocks and other securities.
Expected to go live in early-to-mid 2026, with preparations already underway. Trading will start with Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Expansion to additional tokens and services (like wallets and tokenized assets) is planned as a “tip of the iceberg” for broader integration.
Morgan Stanley is collaborating with Zerohash, a digital asset infrastructure provider handling liquidity, custody, and settlement. Zerohash recently raised $104 million in funding at a $1 billion valuation, with Morgan Stanley as an investor alongside Interactive Brokers and SoFi.
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ETrade, acquired by Morgan Stanley in 2020 for $13 billion, serves a retail-focused audience average user age ~52, average account size $100K+. This could channel substantial traditional investor capital—potentially up to $1.3 trillion in trading volume—into crypto markets.
Morgan Stanley’s move aligns with a wave of institutional adoption, fueled by favorable U.S. regulations under the Trump administration, including the GENIUS Act for stablecoins. The bank has been ramping up crypto exposure since August 2024, when it allowed wealth advisors to pitch spot Bitcoin ETFs to clients.
This positions Morgan Stanley ahead of peers like Charles Schwab which offers crypto ETFs but not direct trading and ahead of rivals like Robinhood, which derives ~20% of revenue from crypto. The crypto market, valued at ~$3.9 trillion (BTC at $2.25T, ETH at $506B), stands to benefit from this influx, potentially driving bullish momentum as Wall Street liquidity enters.
The news has sparked excitement, with users highlighting it as a “historic bridge between Wall Street and Web3” and predicting accidental boomer buys of Bitcoin next to Apple shares. This development underscores crypto’s maturation as an asset class, but remember: trading involves high volatility and risks.
With ETrade’s potential to channel up to $1.3 trillion in trading volume based on user base estimates, crypto markets could see significant capital inflows, driving price appreciation. For context, Bitcoin’s market cap is ~$2.25 trillion, and the total crypto market is ~$3.9 trillion.
A Wall Street titan like Morgan Stanley managing $6.6 trillion in assets entering retail crypto trading validates digital assets, potentially reducing stigma and encouraging other institutions to follow.
Morgan Stanley’s move puts pressure on rivals like Charles Schwab limited to crypto ETFs, Fidelity offers Bitcoin trading but smaller retail reach, and JPMorgan focused on institutional stablecoin services. Competitors may accelerate their own crypto offerings to avoid losing market share.
Retail investors can integrate crypto into traditional portfolios stocks, bonds on ETrade, simplifying allocation strategies. This could shift how advisors recommend assets, with crypto becoming a standard portfolio component for risk-tolerant clients.
Morgan Stanley’s compliance-heavy approach, backed by Zerohash’s regulated infrastructure, sets a model for other banks to navigate U.S. regulations (e.g., SEC, CFTC oversight). This could streamline future approvals for crypto products.
New retail investors, less familiar with crypto’s volatility (e.g., Bitcoin’s 20-30% drawdowns), could amplify price swings if they panic-sell during dips or FOMO-buy during rallies. Starting with BTC, ETH, and SOL may boost these assets’ dominance, potentially sidelining smaller altcoins.
Morgan Stanley’s use of Zerohash for custody, liquidity, and settlement highlights the growing role of specialized crypto infrastructure providers. This could spur innovation in secure, scalable trading systems. Morgan Stanley’s mention of wallets and tokenized assets suggests a roadmap for DeFi integration.
As a global bank, Morgan Stanley’s U.S.-based crypto trading could influence international markets, especially in regions with growing crypto adoption (e.g., EU, Asia). However, stricter jurisdictions (e.g., China) may resist similar moves.
Crypto’s high volatility (e.g., Bitcoin’s 50%+ yearly swings) poses risks for retail investors, especially those new to the asset class. Morgan Stanley may face reputational risks if clients incur significant losses.
Crypto custody remains a target for hacks (e.g., $3.7 billion stolen in 2022). Zerohash’s infrastructure must prove robust to maintain trust. Morgan Stanley’s 2026 crypto trading launch via ETrade is a pivotal moment for crypto adoption, bridging traditional finance with digital assets.
It could drive market growth, legitimize crypto, and reshape portfolio strategies, but it also introduces risks of volatility, regulatory hurdles, and security challenges. Investors should approach with caution, conduct thorough research, and monitor regulatory developments.