Morgan Stanley Opens Crypto Trading on E*Trade, Marking a Major Step for Wall Street

Morgan Stanley has become the latest major financial institution to fully embrace digital assets. The Wall Street giant announced that it will integrate cryptocurrency trading into its E*Trade platform starting in 2026, following a partnership with infrastructure provider Zerohash. The move will allow millions of E*Trade’s retail customers to trade leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) directly through the brokerage’s interface, representing a significant stepping stone toward the merger of traditional finance and the crypto economy.

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The Role of Zerohash

Instead of spending time and money on creating an in-house crypto infrastructure, Morgan Stanley opted to partner with Zerohash, a leading settlement and custody provider for digital assets. Zerohash provides critical architecture for many financial institutions and brokers. The company handles everything from transaction settlements to tax reporting. By hiring Zerohash to outsource the technical side of the business, Morgan Stanley ensured that it received the best service possible while minimizing risk.
It also allowed the bank to speed up the time frame, as Zerohash already has the necessary technological solutions and know-how. This will allow Morgan Stanley to launch its trading platform extremely quickly. Zerohash, on the other hand, will benefit greatly from partnering with a major Wall Street bank, demonstrating that it has the trust of banking giants.

Bridging Wall Street and Digital Assets

With 6 million active accounts, E*Trade will give Morgan Stanley enormous reach. Unlike classic crypto exchanges like Coinbase or Binance, E*Trade attracts not just crypto natives, but also traders who already have some experience in equities, ETFs, and options. By adding crypto into the mix, the bank provides an attractive trading option for users who are already versed in traditional investing but may have been hesitant to open an account on a pure crypto exchange.
Timing is also important, as cryptocurrencies are finally becoming part of mainstream finance rather than a fringe experiment. As more and more people opt to buy, chances are they will choose a platform backed by a traditional big bank, like E*Trade.

Competitive Pressures in the Exchange Space

Among other things, the move is expected to increase competition between crypto exchanges. Platforms like Coinbase, Binance, and Kraken have long dominated retail trading in digital assets, but the arrival of a traditional broker like Morgan Stanley threatens to disrupt that dynamic. Backed by one of the biggest Wall Street players, E*Trade could quickly become a preferred venue for retail investors who want to diversify into crypto without leaving the security of a traditional banking environment.
Sites like Webopedia could play a role here, though. As an educational platform, it offers deep insight into how crypto exchanges work, something many traditional investors are still not clear about. It could be a missing link, pushing people toward crypto platforms and away from traditional banks.

Implications for Investors and Institutions

Morgan Stanley’s decision to enter the crypto space in such a spectacular fashion has sent shockwaves through both Wall Street and the crypto world. Both communities are following the development of the story eagerly, waiting to see the end result. Crypto investors are hoping that the acceptance of big banks like Morgan Stanley will mark a huge moment for the development of crypto. The Wall Street crowd, on the other hand, is eager to satisfy a growing demand for crypto investment and start treating digital assets like any other on the market.

Conclusion

Morgan Stanley’s decision to integrate cryptocurrency trading on E*Trade marks a defining moment for both Wall Street and the crypto sector. The two have often been at odds, mistrusting each other. The new development signifies a new era in the integration of cryptocurrencies into mainstream finance.

To make things even better, Morgan Stanley decided to partner with Zerohash, a company well-respected in crypto circles. This sends a clear message to investors on both sides: crypto is no longer on the fringes of the finance sector, but rather an integral part of it.