Morgan Stanley is set to transform U.S. retail investing by partnering with crypto infrastructure provider Zerohash, allowing E*Trade clients to directly trade Bitcoin, Ethereum, and Solana beginning in 2026.
Announced by Morgan Stanley’s wealth management chief Jed Finn, this move marks a major entry for traditional finance into crypto trading.
The collaboration answers growing client demand for digital assets while also creating new revenue streams and retention levers for Morgan Stanley.
The firm’s phased rollout suggests more features and assets are on the horizon as customer adoption grows.
What does the Zerohash partnership mean for E*Trade clients?
Zerohash’s platform will power crypto trading for over seven million ETrade clients, bringing digital currencies seamlessly into a familiar environment.
As the back-end provider, Zerohash ensures secure custody, settlement, and regulatory compliance while Morgan Stanley manages the user experience and accounts.
This means ETrade investors will be able to buy, sell, and hold popular cryptocurrencies alongside conventional assets without switching platforms.
With the ability to manage all investments in a single dashboard, this direct integration should simplify portfolio strategies for many retail traders.
Morgan Stanley’s participation intends to boost client trust in the new offering, contrasting with some standalone crypto platforms that have faced regulatory challenges.
Did you know?
Zerohash also provides crypto infrastructure for several leading fintech apps across three continents.
Which cryptocurrencies are available at launch and why?
At launch, E*Trade clients will trade Bitcoin, Ethereum, and Solana. Morgan Stanley has chosen these coins for their strong market liquidity and broad recognition, reducing risk while maximizing initial user interest.
Executive statements confirmed these three as "phase one," with plans to expand the asset list in subsequent phases.
Bitcoin and Ethereum account for the majority of global crypto trading volumes and remain foundational to DeFi and NFT markets.
Solana adds a layer of innovation, as it boasts rapid transaction speeds and growing developer adoption, giving E*Trade users diverse exposure from the outset.
How will Morgan Stanley’s asset strategy adapt to crypto?
Morgan Stanley is developing a formal asset-allocation strategy for clients that incorporates cryptocurrencies, with recommendations tailored to each investor’s goals.
Portfolio weights may range from zero to a few percentage points, balancing traditional and digital assets based on factors such as risk tolerance and time horizon.
Jed Finn emphasized that blockchain infrastructure is a permanent part of financial markets and that Morgan Stanley aims to blend traditional and digital assets into one cohesive experience.
Future planned features include a self-custody wallet for clients, giving them greater control over their holdings.
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What are competitors Robinhood and Schwab doing in crypto?
Robinhood continues to lead the mainstream U.S. market for retail crypto trading, recently adding Ethereum and Solana staking for eligible clients.
In contrast, Charles Schwab is following a conservative path, offering only cryptocurrency ETFs and planning to introduce direct spot crypto trading next year.
The increased presence of legacy wealth managers such as Morgan Stanley in digital assets is likely to increase competitive pressure on existing crypto-first platforms.
Both Robinhood and Schwab have benefited from recent surges in crypto trading interest and are actively evolving their product suites in response to market trends.
Could tokenization reshape future financial services?
Morgan Stanley is also eyeing tokenization for broader back-office operations, including settlement, clearing, and new forms of asset management.
Tokenization promises to improve transparency, speed, and efficiency in handling complex financial instruments and private assets.
By exploring tokenized products and services, Morgan Stanley aims to future-proof its wealth management offering and appeal to a digitally native client base.
This move aligns with an industry-wide shift, as global financial institutions seek to blend traditional infrastructure with emerging digital technologies.
The E*Trade crypto launch is expected to unlock new opportunities for Morgan Stanley in wealth management.
As the trend toward digital assets accelerates, more established players are integrating crypto to meet client expectations and keep pace with innovation.
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