Core Insights - Morgan Stanley is set to launch crypto trading for retail clients through its E-Trade division in the first half of 2026, marking a significant move into digital assets [1][2] - The initiative is part of a broader digital asset strategy, with the bank developing a robust wallet infrastructure for custody of client digital assets [3][4] - The announcement contrasts with recent recommendations from the bank's CIO, who favored gold over Bitcoin as a hedge against inflation [5][6] Group 1 - Morgan Stanley will begin offering crypto trading via a partner model with Zerohash for liquidity, custody, and settlement [2] - The head of wealth management at Morgan Stanley described the crypto trading initiative as "the tip of the iceberg" in terms of their digital asset strategy [3] - The bank is focusing on tokenization, which is expected to disrupt wealth management by bringing traditional assets onto blockchains [4] Group 2 - The CIO of Morgan Stanley recently recommended a portfolio strategy excluding Bitcoin, suggesting a 20% allocation to gold instead [5][6] - Despite Bitcoin's significant year-over-year rally of nearly 80%, the CIO cited its volatility and regulatory uncertainties as reasons for its exclusion from inflation hedging strategies [6] - The bank's shift towards crypto trading indicates a potential change in its investment approach, moving towards embracing digital assets [1][5]