Morgan Stanley Expands Crypto: E*Trade Adds Bitcoin, Ether, Solana

Morgan Stanley confirmed that E*Trade will open cryptocurrency trading in the first half of 2026 through infrastructure partner Zerohash, starting with Bitcoin, Ether, and Solana, reflecting the expansion of digital assets on Wall Street.

The move follows Morgan Stanley’s recent moves with a spot Bitcoin ETF and comes amid a more favorable regulatory framework in the United States, including the GENIUS Act on stablecoins.

When will E*Trade open cryptocurrency trading and what coins will it support?

E*Trade plans to open cryptocurrency trading in the first half of 2026, supporting Bitcoin (BTC), Ether (ETH) and Solana (SOL), according to a Morgan Stanley spokesperson (Reuters).

The announcement confirms a May 1 report from Bloomberg about plans to add cryptocurrency trading to E*Trade customers next year. Cointelegraph previously noted the initiative is still in its early stages as E*Trade searches for the right infrastructure partner.

Choosing a trio of major assets reduces deployment risk, prioritizes high liquidation and widespread demand, and is suitable for the startup stage of a retail brokerage platform.

Who is E*Trade?

E*Trade is a retail brokerage platform focused on US equities, acquired by Morgan Stanley in 2020 for $13 billion.

At the time of the deal, E*Trade had more than 5.2 million users and positioned itself as a discount broker, serving individual investors with an ecosystem of trading stocks, options and managed financial products.

Integrating cryptocurrency trading expands the product portfolio for the existing client base, creating a bridge between traditional financial markets and digital assets.

What is Zerohash and what Vai does it play in the deal?

Zerohash is a digital asset infrastructure provider for financial institutions, providing wallet and cryptocurrency trading connectivity for E*Trade (Bloomberg, Fortune).

According to Fortune (September 23, 2025), Zerohash raised $104 million at a $1 billion valuation in a round led by Interactive Brokers, with participation from Morgan Stanley. The company provides cryptocurrency trading infrastructure, Tokenize , and stablecoins for financial institutions and businesses adopting blockchain.

As a “behind the scenes” Vai , Zerohash helps organizations integrate cryptocurrencies without having to build their own infrastructure, meeting operational and compliance requirements.

What will a “full” crypto wallet for E*Trade customers include?

Zerohash will build a full wallet solution for E*Trade customers, according to Bloomberg.

This solution typically includes key management, custody, deposit and withdrawal processing, reconciliation, and a liquidation exchange connectivity layer. For the customer, the experience will be similar to traditional asset trading, while the technical and compliance layer is hidden behind by the infrastructure provider.

This model helps accelerate launches, reduce technology risk, while maintaining the safety and control standards befitting a large institution.

Why is E*Trade's move important to Wall Street?

This is one of Morgan Stanley's first direct retail moves into digital assets, representing a wave of Wall Street's shift into blockchain.

The announcement comes amid a more favorable policy environment from the US government, including the GENIUS Act on stablecoins signed into law by President Donald Trump, which provides a legal framework for issuers. A clear legal framework helps institutions increase confidence when deploying digital asset products.

A large-scale broker integrating cryptocurrencies also sends a positive market signal about operational and compliance standards to other financial institutions.

How Morgan Stanley is expanding into digital assets?

The bank has been ramping up its presence in digital assets since 2024, including working with ETFs and researching stablecoins.

Morgan Stanley will allow asset advisors to proactively offer spot Bitcoin ETFs to qualified clients starting in August 2024. At Davos earlier this year, CEO Ted Pick said the bank was exploring cryptocurrency trading, signaling a strategy geared toward actual product deployment.

While not part of the joint stablecoin initiative mentioned by the WSJ (JPMorgan, Bank of America, Citigroup, Wells Fargo), a 2024 article by Andrew Peel, Head of Digital Asset Markets at Morgan Stanley, argues that stablecoins could reinforce the USD's global Vai , in line with the apparent legalization trend of the GENIUS Act.

How is the stablecoin market and legal framework changing?

The stablecoin market is valued at around $300 billion, according to defillama.

The GENIUS Act provides a comprehensive framework for stablecoin issuers in the United States, reducing regulatory uncertainty – a major barrier for traditional financial institutions. Andrew Peel’s comments on the Vai of stablecoins in strengthening the USD align with the regulatory direction, thereby creating a foundation for safer digital asset products in the financial system.

For an institution like Morgan Stanley, regulatory clarity is a prerequisite before expanding use cases on a large scale.

Main Competitors: Where Does Robinhood Stand?

Notable contender in the crypto discount brokerage space is Robinhood, which has opened crypto trading and acquired the Bitstamp exchange for $200 million.

The Bitstamp acquisition represents Robinhood’s strategy of integrating deeply chain the value chain, from brokerage to owning an exchange, while E*Trade opted for an infrastructure partnership with Zerohash to shorten launch time and optimize compliance.

The race will revolve around user experience, asset portfolio, fees and operational reliability as volumes increase.

Market Dynamics: Why start with BTC, ETH, SOL only?

These three assets have high liquidation and recognition, which helps reduce risk in the early stages of implementation.

BTC is often XEM as a foundational asset, ETH is associated with the smart contract ecosystem, and SOL stands out for its performance and strong development community. The initial cap helps control technical risks, compliance, and better customer support before expansion.

Once operations are stable, the platform may consider adding other assets depending on needs and legal framework.

Risks and notes for individual investors

Cryptocurrencies are volatile, investors should understand the product and their risk tolerance before participating.

In addition to market risk, infrastructure partner risk, transaction fees, spreads, and custody processes should be considered. Investors should monitor official updates from E*Trade on fees, transaction limits, account protection mechanisms, and custody standards when the wallet is deployed by Zerohash.

Disciplined Capital allocation and risk management are always important, especially during times when new products are emerging in the market.

Notable milestones and key sources

Key information comes from Reuters (E*Trade will support BTC, ETH, SOL in the first half of 2026), Bloomberg (crypto trading plan and Zerohash builds wallet), Fortune (Zerohash Capital $104 million, valuation $1 billion, Interactive Brokers leads, with Morgan Stanley participating) and defillama (stablecoin market size around $300 billion).

Related contexts include allowing advisors to introduce a Bitcoin ETF for spot delivery from August 2024, Morgan Stanley CEO's discussion at Davos about crypto trading, Andrew Peel's 2024 paper on the Vai of stablecoins with the USD, and the GENIUS Act being signed into law.

Frequently Asked Questions

What cryptocurrencies will E*Trade support at launch?

Bitcoin (BTC), Ether (ETH) and Solana (SOL), according to a Morgan Stanley spokesperson quoted by Reuters on September 23, 2025.

When does E*Trade open cryptocurrency trading?

First half of 2026. Specific timing will be announced by E*Trade when it is ready to operate with Zerohash infrastructure.

What Vai does Zerohash play in E*Trade's plans?

Zerohash provides trading infrastructure and will build full wallet solutions for E*Trade customers (Bloomberg, Fortune).

What recent moves has Robinhood made in the crypto space?

Robinhood has opened crypto trading and acquired Bitstamp in a $200 million deal, expanding its footprint in the space.

How does the GENIUS Act affect institutional planning?

The GENIUS Act establishes a comprehensive legal framework for stablecoin issuers in the United States, reducing regulatory uncertainty and facilitating institutional deployment of digital asset products.