E*Trade will launch BTC, ETH, SOL trading, and Morgan Stanley is fully entering the crypto market.

Wall Street financial giant Morgan Stanley's E*Trade announced that it will launch cryptocurrency trading services in the first half of 2026, initially supporting the three major crypto assets: Bitcoin, Ethereum, and Solana. This strategic move marks the deep participation of financial institutions in the digital asset space and reflects the trend of Wall Street accelerating its embrace of cryptocurrencies in the context of supportive policies under the Trump administration.

Morgan Stanley's Crypto Ambitions: A Comprehensive Layout from Institutions to Retail

E*Trade will provide Crypto Assets trading services to its over 5 million users through a strategic partnership with digital asset infrastructure provider Zerohash. A Morgan Stanley spokesperson confirmed to Reuters that this goal will be achieved in the first half of 2026.

“This is not only a product expansion for ETrade, but also a key step in Morgan Stanley's overall digital asset strategy,” said a financial technology analyst. “Through ETrade as a retail channel, Morgan Stanley can expand its encryption business from institutional clients to ordinary investors.”

This announcement confirms a report by Bloomberg on May 1 of this year, when the media revealed that ETrade plans to add crypto asset trading features in 2026. At that time, the plan was still in its early stages, and ETrade was seeking partnerships with infrastructure providers. Today, this partnership has been established with Zerohash.

“Choosing Zerohash as a partner is a savvy decision,” explained a crypto infrastructure expert. “Although Zerohash is not well-known at the consumer level, it has extensive experience in providing encryption trading infrastructure for Financial Institutions.”

Zerohash: The Crypto Infrastructure Provider Favored by Wall Street

Zerohash may not be as well-known in the crypto assets space as exchanges, but its strength should not be underestimated. According to a report by Fortune magazine on Tuesday, the company raised $104 million in a funding round led by Interactive Brokers, with a valuation reaching $1 billion. Notably, Morgan Stanley also participated in this funding round, indicating the bank's deep trust and commitment to its partners.

“Morgan Stanley's participation in Zerohash's funding round is not just an investment, but a strategic alliance,” a venture capital expert pointed out. “This 'investment + cooperation' model can ensure that both parties' interests are aligned and facilitate closer technological integration.”

According to Bloomberg, Zerohash will create a complete wallet solution for E*Trade customers, which means that users will not only be able to trade Crypto Assets but also securely store and manage their digital assets.

“A complete wallet solution is a key differentiating factor,” explained a digital asset security expert. “Many Financial Institutions only offer trading functionality without providing true ownership of Crypto Assets. E*Trade's solution may offer users a more comprehensive crypto experience.”

Competitive Landscape: E*Trade Challenges Robinhood's Crypto Dominance

E*Trade's biggest competitor in the discount brokerage crypto assets space is undoubtedly Robinhood, which has rapidly expanded its business by offering crypto assets trading and recently acquired the well-known exchange Bitstamp for $200 million, further solidifying its position in the encryption space.

“ETrade's entry into the crypto assets market may trigger a new round of competition in the retail brokerage sector,” said a market research analyst. “Robinhood has strong brand recognition among young investors, but ETrade is backed by Morgan Stanley and has a more mature customer base and stronger capital strength.”

E*Trade was acquired by Morgan Stanley for $13 billion in 2020. At the time of the deal, this discount brokerage had over 5.2 million users and offered a regulated financial securities trading platform focused on retail, primarily targeting U.S. residents. This vast user base provided a natural market for its crypto assets services.

“The advantage of E*Trade is that its existing customer base is already accustomed to investing on the platform,” pointed out a user experience expert. “For these users, adding Crypto Assets trading features on the same platform is a natural extension, without the need to switch to a new service provider.”

The Evolution of Morgan Stanley's Digital Asset Strategy

Although E*Trade's launch of cryptocurrency represents Morgan Stanley's first direct entry into the retail space for digital assets, the bank has already deepened its influence in the field at the institutional level.

Starting from August 2024, Morgan Stanley will allow its wealth advisors to actively promote spot Bitcoin exchange-traded funds (ETFs) to eligible clients. Earlier this year, at the World Economic Forum in Davos, CEO Ted Pick stated that the bank is also exploring the trading space for Crypto Assets.

“Morgan Stanley is taking a gradual encryption strategy,” explained a banking analyst, “from allowing clients to access Bitcoin ETFs to now offering direct trading through E*Trade, this reflects the bank's attitude towards digital assets is gradually changing.”

Interestingly, Morgan Stanley was not among the Wall Street firms reported in May that were considering a joint stablecoin project. According to the Wall Street Journal, JPMorgan, Bank of America, Citigroup, and Wells Fargo are exploring this idea.

“Morgan Stanley seems to be more focused on trading and investment products rather than payment infrastructure,” the analyst added, “which may reflect its strategic priorities in different segments of the crypto market.”

Improvement of Regulatory Environment: Trump Administration's Crypto-Friendly Policies

The launch of E*Trade's crypto services comes at a time when the regulatory environment in the United States is becoming increasingly friendly towards digital assets. Recently, U.S. President Donald Trump signed the GENIUS Act, establishing a comprehensive regulatory framework for stablecoin issuers, which is seen as a significant victory for the crypto industry.

“The increase in regulatory clarity is the key catalyst for financial institutions to enter the crypto space,” said a crypto regulation expert. “The passage of the GENIUS Act provides a clearer legal foundation for banks to participate in digital asset businesses.”

Andrew Peel, the Head of Digital Assets Market at Morgan Stanley, pointed out in a paper published in 2024 that stablecoins could reinforce the global dominance of the dollar—this view aligns with recent efforts by regulators to establish clear stablecoin legislation.

“Large financial institutions are increasingly recognizing that encryption technology will not only not threaten the traditional financial system, but can actually enhance its efficiency and competitiveness,” the expert added, “especially in the area of international payments and settlements.”

( Market Impact and Future Outlook

The announcement of E*Trade's encryption services may have a positive impact on the entire crypto market, particularly for the first three crypto assets it supports: Bitcoin (currently priced at about 112,286 USD), Ethereum (about 4,185 USD), and Solana (about 215.12 USD).

“The addition of E*Trade will bring new retail capital inflows to these mainstream crypto assets,” predicted a crypto market strategist. “Especially for Solana, being included as one of the first supported assets is an important recognition that may further solidify its position as a mainstream crypto asset.”

From a broader perspective, E*Trade's launch of crypto services represents another milestone in the integration of traditional finance and the world of crypto assets. As more mainstream financial institutions enter this field, the adoption and legitimacy of crypto assets will further increase.

“We are witnessing a paradigm shift in financial services,” summarized a financial innovation researcher, “Financial institutions no longer see encryption as a threat or speculative bubble, but rather as a financial innovation that must be integrated. This shift in attitude could accelerate the mainstreaming of crypto assets.”

As the launch of E*Trade's encryption services in 2026 approaches, the market will closely monitor the implementation details, user experience design, and its impact on the competitive landscape. Regardless of the outcome, this move signifies that the boundaries between Wall Street and the crypto world are becoming increasingly blurred.