Morgan Stanley Enters Crypto: What the E*Trade–Zerohash Deal Means

What Happened

Morgan Stanley announced that in early 2026, E*Trade clients will be able to trade Bitcoin, Ethereum, and Solana, thanks to a partnership with Zerohash, a digital asset infrastructure provider.

The bank will rely on Zerohash for custody, settlement, and trading infrastructure. Zerohash also recently raised $104M in funding, valuing itself as a crypto infrastructure “unicorn.”

Why It Matters

1. Wall Street + Retail Crypto Collision
   Morgan Stanley is bridging its institutional influence with retail access. Many banks talk regulation or infrastructure — few commit to letting everyday clients trade crypto. This is a big step in “crypto goes mainstream.”
2. Less Third-Party Overhead
   Clients won’t need to use external crypto exchanges or wallets for BTC, ETH, SOL — they can do it through E*Trade. That means fewer intermediaries, potentially lower fees, and smoother UX.
3. Timing & Regulation Play
   This move comes amid more favorable policy winds in the U.S. The regulatory groundwork is shifting, making large banks more confident to experiment with crypto services.
4. Zerohash’s Role
   Zerohash isn’t just a service provider — by powering custody, settlement, and trading for a major bank, it becomes a backbone infrastructure player. Its valuation and partnerships add weight to the bet.

What to Watch

• Which assets come next? Will Morgan Stanley eventually expand beyond BTC / ETH / SOL — perhaps into altcoins, tokenized stocks, or stablecoins?
• Fees, custody model, and user experience — how “seamless” will this integration feel? Wallets, withdrawals, control — all are key.
• Regulatory risk & oversight — as banks enter crypto retail, regulators will scrutinize protections, AML, custody laws, and disclosures.
• Competitive reaction — Robinhood, Coinbase, and traditional brokerages will need to respond.

Final Take

Morgan Stanley’s E*Trade + Zerohash plan is one more example in the widespread push for crypto assimilation. This project signals confidence from a legacy financial company that crypto belongs in portfolio services. For users, it could remove friction. For the industry, it raises the bar on expectations.

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