Bitcoin News Today: As CIO Backs Gold, Morgan Stanley Advances Crypto Trading

Morgan Stanley is preparing to offer direct crypto trading to retail clients through its E-Trade platform by the first half of 2026, marking a significant expansion into digital assets for the Wall Street giant Morgan Stanley to offer crypto trading in surprise move^[1]. The firm will collaborate with Zerohash, a crypto infrastructure startup in which it has invested, to manage liquidity, custody, and settlement for the service Morgan Stanley plans to offer crypto trading through E …^[2]. This move aligns with the broader financial industry's shift toward integrating digital assets, driven by regulatory changes under the U.S. government led by President Donald Trump. Morgan Stanley's wealth management division, which generated nearly half of the bank's total revenue in 2024, is prioritizing the initiative to meet growing client demand for crypto exposure Morgan Stanley to offer crypto trading in surprise move^[1].

The bank's strategy involves a "partner model" to launch the service, with initial offerings including Bitcoin, Ethereum, and Solana Morgan Stanley to offer crypto trading in surprise move^[1]. Jed Finn, head of wealth management at Morgan Stanley, emphasized that enabling crypto trading is "the tip of the iceberg" for the firm's digital asset ambitions, as it develops a custodial wallet to hold clients' digital assets directly Morgan Stanley plans to offer crypto trading through E …^[2]. This approach aims to reduce reliance on third-party management fees while addressing the risks associated with direct crypto ownership. Finn also highlighted tokenization as a transformative force in wealth management, with blockchain technology poised to tokenize traditional assets such as stocks, bonds, and real estate Morgan Stanley plans to offer crypto trading through E …^[2].

The announcement reflects a broader trend of institutional adoption of crypto. Earlier in 2024, Morgan Stanley and other banks began offering Bitcoin funds to wealthy clients via third-party custodians like Galaxy Digital. Now, the firm is moving to enable direct ownership, a step that requires robust infrastructure and regulatory clarity. The U.S. regulatory environment has shifted in favor of crypto, with the Federal Reserve retracting prior restrictions on crypto activities and the Office of the Comptroller of the Currency allowing banks to custody crypto assets . These changes have emboldened financial institutions to explore crypto-backed services, as seen in JPMorgan's recent decision to accept Bitcoin ETFs as loan collateral .

Market analysts note that Morgan Stanley's timing aligns with a surge in institutional interest in crypto. U.S. spot Bitcoin ETFs, approved in January 2024, have attracted over $128 billion in assets under management, with BlackRock's iShares Bitcoin Trust (IBIT) leading the pack . The bank's wealth management division, which accounts for nearly half of its revenue, is leveraging this momentum to position itself as a leader in bridging traditional and digital finance Morgan Stanley to offer crypto trading in surprise move^[1]. However, the move contrasts with recent caution from Morgan Stanley's chief investment officer, Mike Wilson, who recommended gold over Bitcoin as an inflation hedge, citing volatility and regulatory uncertainty Morgan Stanley plans to offer crypto trading through E …^[2].

Despite these internal divergences, the bank's strategic pivot underscores the growing legitimacy of crypto as an asset class. By 2026, Morgan Stanley aims to offer a comprehensive digital asset ecosystem, including tokenized assets and custodial solutions, to meet evolving client expectations Morgan Stanley plans to offer crypto trading through E …^[2]. The firm's expansion into crypto trading also highlights the competitive pressures facing traditional financial institutions, as rivals like JPMorgan and Standard Chartered increasingly integrate digital assets into their services .