Morgan Stanley's E*Trade to Offer Bitcoin, Ether, Solana Trading in 2026 Through Zerohash Partnership

Executive Summary

Morgan Stanley's E*Trade is set to introduce cryptocurrency trading for its clients in the first half of 2026, a move facilitated by a partnership with infrastructure provider Zerohash. This initiative will initially enable trading of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), marking a significant step in the integration of digital assets into mainstream financial services.

The Event in Detail

In the first half of 2026, Morgan Stanley's E*Trade will expand its offerings to include cryptocurrency trading for its client base, which comprised over 5.2 million users at the time of its 2020 acquisition by Morgan Stanley. The service will initially support spot trading for Bitcoin, Ethereum, and Solana. This expansion is underpinned by a strategic partnership with Zerohash, a cryptocurrency infrastructure provider. Zerohash will supply essential backend services for liquidity, custody, and settlement. The collaboration follows Morgan Stanley's participation in a funding round for Zerohash, which recently raised $104 million at a $1 billion valuation.

Market Implications

This move by Morgan Stanley is anticipated to significantly impact institutional and retail participation in the cryptocurrency market. By integrating crypto trading into a platform with potentially 20 million clients, the initiative is expected to democratize access to digital assets. Analysts suggest this could unlock up to $1.3 trillion in trading volume, thereby increasing liquidity and fostering mainstream acceptance of cryptocurrencies as a legitimate asset class. The decision also places E*Trade in direct competition with platforms like Robinhood, which recently acquired Bitstamp for $200 million.

Expert Commentary

Jed Finn, head of Morgan Stanley Wealth Management, described the rollout as "Phase One," indicating a broader strategic vision. Finn stated that the bank is developing a comprehensive wallet solution for clients to directly hold and manage digital assets alongside traditional portfolios. He emphasized that "the underlying technology has been proven and blockchain-based infrastructure is obviously here to stay." Finn also revealed that Morgan Stanley is preparing an asset allocation framework, which could dedicate a small percentage of client portfolios to cryptocurrencies, subject to risk tolerance. Furthermore, the firm is exploring tokenization for long-term applications, including streamlining settlement, clearing, and creating tokenized substitutes for cash and traditional assets. Adam Berg, CFO and CAO of Zerohash, commented that "Every financial institution is looking to provide access to the crypto asset class and innovate with this technology at scale."

Broader Context

The expansion comes amid a regulatory environment increasingly favorable to crypto projects in the U.S., influenced by pro-crypto policies. Recent legislative actions, such as the GENEUS Act, have created a clearer path for brokerage firms to expand digital asset offerings. The U.S. Securities and Exchange Commission (SEC) has also approved generic listing standards for commodity-based trust shares, aiming to expedite the approval of cryptocurrency ETFs. Current market data shows substantial engagement in crypto ETFs, with Bitcoin ETFs recording cumulative net inflows of $57.35 billion and total net assets of $148.09 billion, representing 6.5% of the total BTC market cap. Ethereum ETFs have cumulative net inflows of $13.84 billion and total net assets of $27.52 billion. Zerohash's regulatory compliance, including licenses in multiple jurisdictions (U.S., Canada, Netherlands) and a voluntary assessment against SEC standards, further solidifies the institutional credibility of this partnership.