Morgan Stanley to Unlock $1.3T Crypto Trading via E-Trade in 2026

Core Insights - Morgan Stanley is set to launch cryptocurrency trading for E-Trade clients in the first half of 2026, potentially accessing $1.3 trillion in trading volume [1] - The initial offering will focus on Bitcoin, Ether, and Solana, with plans for future expansion [2] - The initiative aims to integrate traditional finance with digital assets, enhancing the bank's competitive position [4] Group 1: Launch Details - The cryptocurrency trading service will begin with spot trading for Bitcoin, Ether, and Solana, marking the first phase of a broader digital asset platform [2][3] - Morgan Stanley is developing a wallet for clients to manage digital assets alongside traditional portfolios, emphasizing the integration of both asset types [3] Group 2: Competitive Landscape - The launch comes as competitors like Charles Schwab explore digital asset offerings, while Robinhood has generated $626 million from crypto trading last year [5] - JPMorgan has partnered with Coinbase to enhance crypto purchases, indicating a growing trend among major banks to enter the digital asset space [5] Group 3: Infrastructure and Partnerships - Morgan Stanley is partnering with Zerohash for liquidity, custody, and settlement, which is crucial for managing large-scale trading and regulatory compliance [1][7] - Zerohash recently raised $104 million in funding, highlighting its significance in the collaboration and its valuation of $1 billion [6]