Morgan Stanley to Add Crypto Trading on E-Trade, Expanding Investor Access and Diversification
Imagine your favorite bank suddenly letting you buy and sell Pokémon cards, not just dollars. That’s kind of what’s happening as Morgan Stanley, a famous Wall Street bank, gets ready to let regular people trade cryptocurrencies like Bitcoin through its E-Trade platform.
What’s Happening?
Morgan Stanley plans to offer crypto trading to E-Trade customers by the first half of 2026. This is a big deal because, until now, big banks mostly let only rich clients invest in crypto, and usually through complicated funds. Now, the door is opening for everyone with an E-Trade account.
To make this happen, Morgan Stanley is teaming up with a company called Zerohash, which will help with things like holding and moving the crypto safely.
Why Does This Matter for Investors?
This move is like a giant green light for digital money. If a bank as big as Morgan Stanley thinks crypto is worth offering to everyday people, it could mean more trust and more demand for digital coins. It’s also a sign that banks want to make money from new tech, not just old-school stocks and bonds.
According to Statista, there are now over 420 million crypto users worldwide, showing just how mainstream this market has become.
The Bull Case: Reasons to Be Excited
- More Access: Everyday investors will soon be able to buy and sell crypto as easily as stocks.
- Lower Fees: Direct trading cuts out middlemen, so you might pay less in management fees.
- Big Bank Backing: Having a name like Morgan Stanley behind crypto could boost confidence and stability in the market.
- New Tech Coming: The bank is working on “tokenization,” which could let people own digital versions of things like real estate or bonds—making investing faster and easier.
The Bear Case: Risks and Concerns
- Volatility: Cryptocurrencies can swing wildly in price. You could win big—or lose big—fast.
- Security Risks: While Morgan Stanley is building a “robust wallet,” crypto is still a target for hackers.
- Regulation Uncertainty: Rules around crypto can change quickly, and governments might crack down or add new taxes.
- Not for Everyone: Just because you can buy crypto doesn’t mean you should. It’s riskier than most stocks or bonds.
What’s Different This Time?
Back in 2020, banks like Morgan Stanley and Goldman Sachs let wealthy people invest in crypto funds, but not own the coins directly. Now, Morgan Stanley’s plan is to let regular folks actually own Bitcoin, Ethereum, and Solana themselves—no fancy funds, no extra fees.
Plus, the bank wants to help clients manage both regular and digital assets in one place. This could make tracking your investments much simpler, and it shows how much banks believe in the future of digital finance.
Tokenization is another big idea. It means turning real things—like cash, stocks, or even houses—into digital tokens on a blockchain. According to a Deloitte report, tokenization could make trading faster and cheaper, and open up new investment opportunities for everyone.
Investor Takeaway
- Stay Informed: Watch for updates from Morgan Stanley and other big banks about new crypto offerings and features.
- Know Your Risk: Crypto can be exciting, but it’s not a sure thing. Only invest what you can afford to lose.
- Diversify: Don’t put all your eggs in one basket. Mix crypto with stocks, bonds, and other assets for a safer portfolio.
- Look for New Opportunities: Keep an eye on tokenization and how it might let you invest in things you couldn’t before.
- Check Security: Make sure any platform you use has strong protections in place for your digital assets.
For the full original report, see CNBC
