Morgan Stanley Pushes Into Crypto
Morgan Stanley (MS) is preparing to offer crypto trading through its E-Trade platform by the first half of 2026, according to an internal memo. The move positions the Wall Street giant as one of the most aggressive big banks adopting digital assets.
The offering will initially include bitcoin, ether, and Solana, and will operate through a partner model with Zerohash — a crypto infrastructure startup in which Morgan Stanley has taken an equity stake.
Jed Finn, Morgan Stanley’s head of wealth management, described the expansion as “the tip of the iceberg.”
From Bitcoin Funds to Direct Trading
This isn’t Morgan Stanley’s first foray into crypto. Four years ago, the firm — along with Goldman Sachs — began offering bitcoin funds to wealthy clients through third-party managers like Galaxy Digital.
But this next step is more ambitious: offering direct ownership of crypto on E-Trade. Cutting out intermediaries reduces management fees, but also introduces higher volatility and custody risks — challenges Morgan Stanley is preparing to manage with its own wallet solution.
Tokenization: The Next Big Disruption
Beyond cryptocurrencies, Morgan Stanley is betting on tokenization as a core part of wealth management’s future. Tokenization refers to creating blockchain-based versions of traditional assets — from cash to bonds and real estate.
According to Finn, tokenized substitutes for cash could “begin paying interest as soon as it hits the wallet,” with other asset classes soon following.
“We see immense power in the cryptocurrency space, not just with crypto as an investment for our clients, but also around DLT and tokenization more broadly,” Finn said, referencing distributed ledger technology.
Strategic Context
Wealth management accounted for nearly half of Morgan Stanley’s total revenue last year, making digital assets an increasingly central part of its long-term growth plan. The bank is working to position itself as the custodian of choice for clients’ traditional and digital wealth.
The timing aligns with a broader shift in Washington’s stance on crypto following President Trump’s election, which has created a more favorable regulatory environment for incumbents.
WSA Take
Morgan Stanley’s crypto rollout is a milestone in the financial industry’s slow but steady embrace of digital assets. By embedding bitcoin, ether, and tokenized assets directly into E-Trade accounts, the bank is signaling that crypto isn’t just an experiment — it’s becoming part of mainstream wealth management infrastructure.
For investors, this is a signal of what’s coming: Wall Street banks are preparing for a future where portfolios blend stocks, bonds, and tokenized assets on the same screen. The next battle will be who controls the wallet — and Morgan Stanley just made its move.
If you missed our breakdown of Nvidia’s $100B bet on OpenAI, it’s another sign that the financial system is retooling itself for a digital-first era. For more exclusive insights, head to the Wall Street Access homepage.
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