Morgan Stanley Bridges Traditional and Digital Wealth with 2026 Crypto Launch

Morgan Stanley is set to launch cryptocurrency trading for retail clients through its ETrade platform in the first half of 2026, marking a significant expansion of its digital asset strategy. The move, detailed in an internal memo obtained by CNBCMorgan Stanley Plans to Offer Crypto Trading Though E-Trade Next Year^[1], underscores the bank’s commitment to integrating crypto into mainstream wealth management. Jed Finn, Morgan Stanley’s head of wealth management, described the initiative as a “transformative moment” for the industry, emphasizing the growing demand among clients to manage traditional and digital assets within a unified ecosystemMorgan Stanley Plans to Offer Crypto Trading Though E-Trade Next Year^[1].

The bank is collaborating with Zerohash, a crypto infrastructure startup, to handle liquidity, custody, and settlement for the service. Morgan Stanley has also taken an equity stake in Zerohash, signaling its strategic investment in digital asset infrastructureMorgan Stanley to Introduce Retail Cryptocurrency Trading^[4]. Initial offerings will include Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), with plans to expand to additional cryptocurrencies in the futureMorgan Stanley to Introduce Retail Cryptocurrency Trading^[4]. This shift from indirect exposure—such as Bitcoin funds managed by third-party providers—to direct ownership reflects a broader industry trend toward retail access to crypto marketsMorgan Stanley Plans to Offer Crypto Trading Though E-Trade Next Year^[1].

A key component of Morgan Stanley’s strategy is the development of a proprietary digital wallet to serve as a custodian for clients’ crypto holdings. The wallet is designed to support not only cryptocurrencies but also tokenized versions of traditional assets, such as bonds, stocks, and real estateMorgan Stanley to Introduce Retail Cryptocurrency Trading^[4]. Tokenization, the process of creating digital representations of assets on blockchain, is expected to enhance liquidity, reduce settlement delays, and streamline portfolio management. Finn noted that tokenized assets could enable “instantly yield-bearing” cash equivalents, a feature absent in traditional financial systems.

The initiative aligns with Morgan Stanley’s broader vision to remain competitive in a rapidly evolving wealth management landscape. Wealth management accounted for nearly half of the bank’s revenue in 2024, making it more reliant on this segment than peers like Goldman SachsMorgan Stanley Plans to Offer Crypto Trading Though E-Trade Next Year^[1]. The bank’s entry into direct crypto trading comes as rivals such as Robinhood and Interactive Brokers already generate significant revenue from digital assets. Analysts suggest that Morgan Stanley’s move could reshape industry dynamics, particularly as younger investors increasingly demand seamless integration of traditional and digital holdings.

Regulatory shifts under the Trump administration have also accelerated institutional adoption of crypto. Morgan Stanley’s proactive stance positions it as a leader in Wall Street’s digital transformation. The bank’s stock rose 1.93% in early trading following the announcement, reflecting investor confidence in its strategic direction. Year-to-date, shares have gained 27.8%, indicating strong market support for its digital asset initiatives.

The rollout represents more than a product launch—it signals a fundamental reimagining of wealth management. By embracing tokenization and blockchain technology, Morgan Stanley aims to create a unified platform where clients can manage diverse assets in a single interface. Finn described crypto trading as the “tip of the iceberg,” with long-term plans to leverage distributed ledger technology (DLT) to redefine asset management efficiencyMorgan Stanley to Introduce Retail Cryptocurrency Trading^[4]. As the $3.9 trillion crypto market continues to mature, Morgan Stanley’s integration of digital assets could solidify its position as a bridge between traditional finance and the next generation of wealth management.