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Morgan Stanley, Zerohash to Launch Crypto Trading for ETrade Clients

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Key Takeaways

  • Morgan Stanley and Zerohash will enable E*TRADE clients to trade select cryptocurrencies.
  • The bank plans to add wallet solutions and crypto asset-allocation strategies for clients.
  • MS expects revenue growth from trading spreads, advisory fees and future tokenization services.

Morgan Stanley (MS - Free Report) has collaborated with Zerohash, a cryptocurrency infrastructure provider, enabling E*TRADE clients to trade in popular cryptocurrencies starting in the first half of 2026. This was first reported by Jed Finn, head of wealth management at Morgan Stanley, in an interview with Bloomberg.

Morgan Stanley will initially offer trading in Bitcoin, Ethereum and Solana. Finn described the launch as “phase one,” adding that the firm plans to develop a comprehensive wallet solution for clients as the next step.

Morgan Stanley’s Future Plans for Cryptos

Morgan Stanley is preparing to launch an asset-allocation strategy that includes cryptocurrencies, with portfolio weights ranging from zero to a few percentage points depending on client objectives. It is also exploring broader applications of tokenization, such as streamlining settlement and clearing in back-office operations.

Finn stated, “The underlying technology has been proven and blockchain-based infrastructure is obviously here to stay. Clients should have access to digitized assets, traditional assets and cryptocurrencies, all in the same ecosystem that they’re used to.”

Finn added that for big wealth-management firms, “sitting between the client and this emerging tradfi-defi divide, and simplifying the user experience” is a “massive opportunity.”

The initiative is expected to boost Morgan Stanley’s revenues through trading spreads, advisory fees on crypto allocations and future services like custody and tokenization, while helping retain clients who might otherwise turn to platforms such as Robinhood (HOOD - Free Report) or Charles Schwab (SCHW - Free Report) .

Robinhood, which offers trading in a broad range of cryptocurrencies, generated significant revenues from its crypto business last year. In June 2025, Robinhood expanded its offerings by launching staking for eligible U.S. investors, starting with Ethereum and Solana. Schwab currently provides exchange-traded funds tied to Bitcoin and Ether. Schwab also plans to introduce spot cryptocurrency trading by next year.

Morgan Stanley’s Zacks Rank & Price Performance

Over the past six months, Morgan Stanley’s shares have gained 28.4%, compared with the industry’s 26.1% growth.

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Currently, Morgan Stanley carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.


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