<h2>Key Points</h2>- E*Trade, owned by Morgan Stanley, plans to integrate cryptocurrency trading, including Bitcoin, Ether, and Solana, by mid-2026.
- They’re partnering with Zerohash, a crypto infrastructure firm valued at $1 billion after raising $104 million.
- Morgan Stanley purchased E*Trade in 2020 for $13 billion, and the platform serves over 5.2 million customers.
- Since August 2024, Morgan Stanley advisors have been permitted to discuss Bitcoin ETFs with clients.
- This move follows recent regulatory developments, including stablecoin framework legislation.
In a significant move for the retail investment space, Morgan Stanley’s E*Trade brokerage is preparing to launch cryptocurrency trading in the first part of 2026. This will enable its large user base to engage with digital assets. The initial offering will include popular cryptocurrencies such as Bitcoin, Ether, and Solana. E*Trade is collaborating with Zerohash, a specialized crypto infrastructure provider, to facilitate these trades.
🚨 Morgan Stanley’s E*Trade to List Digital Assets in 1H26 in Partnership with ZeroHash.$MS Will Also Invest in ZeroHash’s $100M Raise Led by $IBKR, at a Reported $1B Valuation. Additional participants include SoFi, Jump, and some Apollo funds. pic.twitter.com/KcytikydvM
— matthew sigel, recovering CFA (@matthew_sigel) September 23, 2025
E*Trade boasts a substantial user base of over 5.2 million accounts, a figure achieved after its acquisition by Morgan Stanley in 2020 for a reported $13 billion. Known for serving individual investors, E*Trade provides access to a range of traditional investment products, including stocks, bonds, and ETFs.
According to Jed Finn, who leads Morgan Stanley’s wealth management division, the cryptocurrency integration marks the initial step in a broader strategy focusing on digital assets. The long-term vision includes the development of a comprehensive digital wallet solution for E*Trade clients, leveraging the partnership with Zerohash.
This announcement follows reports from May 2024 indicating E*Trade’s active exploration of crypto trading options. During that period, the company was in preliminary stages, evaluating various infrastructure partners.
Zerohash: The Tech Behind the Launch
Zerohash is set to provide the essential technological foundation for E*Trade’s new cryptocurrency trading platform. The company recently secured $104 million in funding, valuing it at $1 billion, with Interactive Brokers leading the investment round. Morgan Stanley also participated as an investor.
Specializing in solutions for financial institutions, Zerohash offers technology for trading, tokenization, and stablecoins. The firm will be responsible for building the wallet infrastructure that E*Trade customers will use to manage their digital assets.
News outlets have reported that this collaboration aims to deliver a complete crypto solution integrated directly into the E*Trade platform. This model mirrors the strategies implemented by other major brokerage firms seeking to meet growing retail demand for crypto assets.
The Competitive Landscape
E*Trade enters a competitive market that includes Robinhood, a leading platform for retail crypto trading. Robinhood recently expanded its crypto footprint through the acquisition of the European exchange Bitstamp for $200 million.
The retail brokerage sector is witnessing increased adoption of crypto, as traditional financial players recognize its importance. Offering crypto trading is now viewed as crucial for attracting younger investors and maintaining market share.
E*Trade’s entry into cryptocurrency trading is notable as one of the largest traditional brokerages to embrace digital assets. This development could potentially open up crypto access to millions of new investors who already use E*Trade for traditional stock trading.
Morgan Stanley’s involvement in crypto has gradually increased since 2024. Starting in August 2024, the firm authorized its wealth advisors to discuss Bitcoin ETFs with qualified clients, marking its initial direct participation in crypto-related offerings.
CEO Ted Pick publicly stated that Morgan Stanley is actively exploring the applications of crypto in transactional settings. The company has also conducted research into stablecoins and their potential to reinforce the global dominance of the U.S. dollar.
This crypto expansion occurs against the backdrop of evolving regulatory changes. Recent legislation has established a clearer framework for stablecoin issuers, providing more defined guidelines for financial institutions entering the crypto sector.
Looking ahead, Morgan Stanley is developing asset allocation models that will incorporate crypto exposure, ranging from zero to several percentage points depending on individual client investment objectives. The firm considers blockchain technology to be a robust and reliable infrastructure that will continue to expand its reach across the financial services industry.
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