Morgan Stanley to Add Crypto Trading to E*Trade by 2026

Morgan Stanley is reportedly preparing to offer cryptocurrency trading through its E*Trade platform by 2026, according to a Bloomberg report published Wednesday.

While the plan is still in early development, sources familiar with the matter said the banking giant is evaluating partnerships with established crypto companies to build out the service. Internal talks around integrating digital assets into E*Trade began in late 2024.

This wouldn’t be the firm’s first move into the crypto space. Morgan Stanley already allows its wealth management clients access to Bitcoin ETFs and crypto-linked futures, with financial advisers permitted to offer Bitcoin ETF products since last August.

However, only clients with a net worth of at least $1.5 million, a high-risk tolerance, and an interest in speculative investments are eligible for Bitcoin ETF solicitation. These investments are available for taxable brokerage accounts, not retirement accounts.

The bank monitors clients’ crypto holdings to ensure they do not have excessive exposure to the volatile asset class.

Historically, major financial advisory firms, also known as wirehouses, such as Bank of America, JPMorgan Chase, and Wells Fargo, have been reluctant to adopt spot crypto trdaing.

The push to expand crypto offerings follows a major change in regulatory sentiment in the U.S. under Trump’s administration, which has taken a more lenient approach to digital assets. Trump’s connections to blockchain ventures and recent changes at the Securities and Exchange Commission, including the appointment of crypto-friendly Chair Paul Atkins, encouraged more traditional financial institutions to revisit digital asset strategies.

While Morgan Stanley has yet to comment on the report, the timing aligns with a broader industry trend wher banks and brokerages are responding to increased investor interest and the regulatory green light to explore crypto-based services.

Trump’s personal ties to the industry have not been without controversy. Lawmakers including Senators Elizabeth Warren and Jon Ossoff raised concerns over conflicts of interest, particularly around his association with a memecoin and its top holders. Ossoff even suggested the president’s actions could warrant impeachment.