Morgan Stanley’s E*Trade is preparing to launch cryptocurrency trading in 2026, partnering with digital asset infrastructure provider Zerohash in a move that underscores Wall Street’s increasing embrace of digital assets.
The rollout will give millions of retail investors direct access to leading cryptocurrencies, including Bitcoin, Ether, and Solana.
Retail investors set for crypto access
A Morgan Stanley spokesperson confirmed that E*Trade clients will be able to trade Bitcoin, Ether, and Solana in the first half of 2026.
The announcement follows earlier reports in May suggesting the brokerage was exploring partnerships to deliver crypto services.
E*Trade, acquired by Morgan Stanley in 2020 for $13 billion, has a history of serving retail traders, with a user base of more than 5 million at the time of the acquisition. Its move into digital assets marks one of the bank’s most direct steps into retail crypto exposure.
Zerohash, the chosen partner for the launch, recently raised $104 million at a $1 billion valuation in a funding round led by Interactive Brokers. Morgan Stanley also participated in the raise.
Zerohash specializes in trading, stablecoin infrastructure, and tokenization services for financial institutions. As part of the agreement, the company will build a full wallet solution for E*Trade clients.
Competition with Robinhood heats up
E*Trade’s expansion pits it against Robinhood, which has aggressively developed its crypto services in recent years.
Robinhood now offers trading across several digital assets and strengthened its position with the $200 million acquisition of Bitstamp, one of the longest-standing cryptocurrency exchanges.
The entry of Morgan Stanley’s retail arm into this space could intensify competition, particularly as mainstream brokerages increasingly target crypto-savvy retail investors.
Wall Street’s broader blockchain ambitions
E*Trade’s crypto debut is part of a wider push by Morgan Stanley into the digital asset sector.
Since 2024, the bank has allowed its wealth advisers to pitch spot Bitcoin ETFs to eligible clients, broadening exposure to digital assets for high-net-worth investors. Earlier this year, CEO Ted Pick highlighted at the World Economic Forum that Morgan Stanley was exploring opportunities in crypto transaction infrastructure.
Interestingly, while several major banks — including JPMorgan, Citigroup, Bank of America, and Wells Fargo — have been exploring joint stablecoin projects, Morgan Stanley has not been directly involved.
Still, the institution has signaled optimism around stablecoins. A 2024 paper by Andrew Peel, Morgan Stanley’s head of digital asset markets, argued that stablecoins could bolster the U.S. dollar’s global standing. That perspective aligns with the GENIUS Act, signed into law by President Donald Trump, which introduced a comprehensive regulatory framework for stablecoin issuers.
A pivotal moment for mainstream crypto adoption
E*Trade’s crypto launch demonstrates how digital assets are increasingly being woven into the offerings of traditional financial institutions.
By partnering with Zerohash, Morgan Stanley is building a bridge between established retail brokerage services and the evolving digital economy.
If executed smoothly, the initiative could further normalize crypto investing for millions of Americans, signaling a new chapter in the integration of Wall Street and blockchain technology.