Morgan Stanley Embraces Cryptocurrency to Transform Contemporary Wealth Management

Morgan Stanley (MS.N) plans to introduce cryptocurrency trading for ETrade users in early 2026, partnering with Zerohash, a provider of digital asset infrastructure title1 [ 1 ]. At launch, the platform will support trading in

(BTC), ether (ETH), and (SOL), as reported by Bloomberg and confirmed by a Morgan Stanley representative. Jed Finn, who leads the bank’s wealth management division, called this move just the “beginning” of a larger plan to bring digital assets into mainstream wealth management services title2 [ 2 ]. This decision comes after regulatory changes under U.S. President Donald Trump, which have prompted more Wall Street institutions to expand their crypto offerings.

Through its partnership with Zerohash, Morgan Stanley will rely on the firm for liquidity, custody, and settlement on the new trading platform title2 [ 2 ]. Zerohash, which recently secured $104 million in funding led by Interactive Brokers and is now valued at $1 billion, will also build a custodial wallet so ETrade clients can directly manage their digital assets. This marks a shift from Morgan Stanley’s previous approach, where

clients gained crypto exposure via third-party managers such as Galaxy Digital. By enabling direct asset ownership, the bank seeks to lower intermediary costs, though it recognizes the increased risks involved title2 [ 2 ].

Morgan Stanley’s entry into crypto trading reflects a wider movement in the financial sector. Rivals like Charles Schwab and Robinhood have already added crypto features, with Robinhood earning $626 million from crypto trades in 2024. The global cryptocurrency market, now worth around $3.9 trillion, has attracted major institutional players, fueled by clearer regulations and rising retail interest. Morgan Stanley’s wealth management arm, which generates nearly half of the company’s revenue, aims to benefit from this momentum by offering clients a single platform for both traditional and digital investments title3 [ 3 ].

Regulatory changes have been key in speeding up adoption. The Trump administration’s support for crypto, including rolling back restrictive SEC rules and removing FDIC warnings about crypto risks, has created a more welcoming environment for banks. Jed Finn stated that blockchain technology is “clearly here to stay,” highlighting the bank’s belief in the future of digital assets title1 [ 1 ]. Morgan Stanley is also looking into using tokenization to improve back-office processes like settlement and clearing, and is working on an asset allocation model that incorporates crypto based on clients’ risk tolerance title1 [ 1 ].

Zerohash’s involvement in the partnership highlights its rising prominence in crypto infrastructure. Achieving unicorn status after its $104 million funding round demonstrates investor trust in its ability to deliver custody and settlement services for institutions. Morgan Stanley’s participation in the funding round further signals its dedication to this collaboration. Experts suggest that integrating Zerohash’s solutions could help ETrade stand out as competition among traditional brokers for crypto market share intensifies.

The upcoming launch is expected to alter the competitive landscape, especially as other major Wall Street banks like JPMorgan and Bank of America explore stablecoin projects and crypto trading platforms. Morgan Stanley’s decision to offer direct crypto ownership and focus on tokenization marks a strategic shift toward fully integrating digital assets into wealth management. Nonetheless, concerns remain about the bank’s ability to maintain growth in a volatile market, given its high debt-to-equity ratio (3.26) and recent insider stock sales title3 [ 3 ].