Morgan Stanley Announces Crypto Trading for E*Trade Starting Mid-2026

23 September 2025

The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in New York, U.S. April 17, 2017. REUTERS/Shannon Stapleton

In a move that marks a new chapter for Wall Street and crypto Morgan Stanley revealed on September 23 that its retail brokerage ETrade will begin offering cryptocurrency trading in the first half of 2026. The service will be launched through a partnership with Zerohash a digital asset infrastructure provider. At launch ETrade clients will be able to trade bitcoin ether and solana.

This is a signal that cryptocurrencies are becoming increasingly mainstream rather than a fringe investment. The overall digital asset market has ballooned to an estimated value of about $3.9 trillion with bitcoin alone making up approximately $2.25 trillion of that total and ether contributing around $506 billion.

Morgan Stanley’s decision is in line with other financial institutions that have started to broaden their exposure to crypto as regulatory conditions have become more favorable. The current administration has loosened several of the restrictions and oversight mechanisms that previously discouraged banks from offering crypto products. This regulatory shift has emboldened firms like Charles Schwab and Robinhood which already offer crypto trading or exposure to crypto via ETFs or token trading.

Zerohash meanwhile is riding its own wave of growth. It recently achieved unicorn status after securing $104 million in a funding round led by Interactive Brokers and with participation from Morgan Stanley and SoFi. The backing from major financial players suggests confidence in crypto infrastructure as an area ripe for innovation and institutional involvement.

For Morgan Stanley this expansion into crypto trading through E*Trade reflects both market demand and competitive pressure. Customers increasingly expect access to digital assets as part of their investment options. Those who have stayed on the sidelines risk losing clients to platforms that offer a fuller range of financial products. At the same time the firm still has to build out operational readiness including custody solutions compliance with anti-money laundering rules and risk management frameworks.

The offering of bitcoin ether and solana to E*Trade clients is a curated selection meant to balance popularity liquidity and regulatory clarity. These are among the most established digital assets and carry relatively greater acceptance in financial markets which helps reduce risk. Customers will likely welcome the ability to trade these cryptos directly rather than gaining exposure via derivatives or funds.

Industry watchers say that this announcement may push more banks to accelerate their own crypto plans. As major institutions begin to treat digital assets less as an experimental domain and more as a core component of retail and institutional finance the competition for talent compliance infrastructure and technological capacity intensifies. Zerohash’s rise to unicorn status underscores that infrastructure firms are central to this shift.

Challenges remain even as opportunity unfolds. Cryptocurrencies are volatile and regulatory oversight is still evolving. Banks offering crypto must ensure that they adhere to customer protection rules know-your-customer (KYC) obligations and stay ahead of cybersecurity threats. There is also continued scrutiny from regulators who may impose new standards or enforce existing ones in ways that could raise operational costs.

For retail investors E*Trade clients will be watching fees execution speed and the experience of trading crypto versus traditional assets. It matters how seamlessly wallets functions integrate whether the platform can offer clear guidance on tax implications and how the platform handles periods of high volatility. Morgan Stanley will need to navigate these practical concerns well if this is to succeed as more than just a headline.

The move is emblematic of where finance is heading in the U.S. as digital assets lose taboo and become part of the toolbox for big banks trusted by millions. For Morgan Stanley the step into direct crypto trading marks a departure from cautious observation toward active participation. It will test whether the promises of broadening access innovation and responsiveness to customer demand translate into profitable and sustainable new business for the firm.