Morgan Stanley, one of the biggest names in global banking, is taking a bold step into the future of finance. The investment banking giant plans to launch cryptocurrency trading on its popular E-Trade platform by 2026. This move could open the doors to digital assets like Bitcoin and Ether for millions of everyday investors across the United States.
While many financial institutions have been cautious about crypto, Morgan Stanley’s decision signals a shift. It shows growing confidence in the future of digital currencies and the changing landscape of crypto regulation under the current U.S. government.
Crypto for the Masses: What Morgan Stanley Is Planning
Morgan Stanley already offers some crypto-related products to its wealthy clients, such as crypto ETFs and futures. But this new move is different. The bank now plans to offer “spot trading” on E-Trade. This means regular users will be able to buy and sell cryptocurrencies like Bitcoin and Ether directly, just like they trade stocks.
The launch is still in the early stages. According to a report from Bloomberg, Morgan Stanley is actively exploring partnerships with established crypto firms to make sure the trading experience is safe and secure. Security is a top priority as the firm works on building the right technology to protect users’ funds and data.
This shift could allow millions of retail investors, not just institutions or wealthy individuals, to access and invest in digital assets directly through a trusted, traditional bank.
A Pro-Crypto Political Climate Supports the Launch
One major reason Morgan Stanley feels confident in moving forward with crypto is the changing regulatory environment in the U.S.
Under President Donald Trump, who returned to office with a more pro-crypto approach, several changes have been made to support the growth of digital assets:
- The Trump administration repealed an SEC rule that previously made it difficult for banks to hold cryptocurrencies securely on behalf of their customers.
- Both the Federal Reserve and the FDIC have also rolled back 2023 warnings that urged banks to be cautious with crypto.
- The Bank Policy Institute, a group that represents large banks, welcomed these updates. The group said the changes will allow banks to offer new crypto products and services more freely.
These moves have made it easier and safer for banks to get involved in the crypto space, opening new opportunities for innovation and competition.
Why This Move Matters: Competition and Opportunity
Morgan Stanley isn’t the first to enter the crypto trading space, but it is one of the largest traditional banks to do so in a big way. The launch of crypto trading on E-Trade could challenge well-known players like Robinhood and Coinbase.
In 2024, Robinhood earned $626 million from its crypto trading business alone.
Coinbase remains one of the top platforms for U.S. crypto traders, but it is not a traditional bank.
By allowing users to buy and sell crypto within a regulated banking environment, Morgan Stanley could attract users who want more security and trust than newer fintech platforms can offer.
Looking Back: Morgan Stanley’s History with Crypto
Morgan Stanley’s interest in crypto is not new. Over the past few years, the bank has taken several steps to become more involved in digital assets.
In 2024, the firm invested $188 million in a Bitcoin ETF, showing its long-term belief in the growth of cryptocurrency.
Late in 2024, internal discussions began about expanding its crypto offerings, beyond ETFs and futures, to include direct trading. The idea was to meet the rising demand from everyday investors, people who may not be wealthy, but want access to Bitcoin and other coins as part of their personal investment strategies.
2026: The Year Crypto Goes Mainstream?
If all goes according to plan, Morgan Stanley will launch retail crypto trading by 2026. That year could mark a turning point for cryptocurrency adoption in the U.S.
Here’s why:
- A major, trusted bank will offer crypto trading directly to average investors.
- Regulations are becoming more crypto-friendly, encouraging banks to build new products.
- Traditional finance and digital finance are starting to blend together.
This launch could also trigger a wave of competition. Other banks and trading platforms may follow Morgan Stanley’s lead, creating more options and better prices for customers.
What It Means for U.S. Investors
For most American investors, crypto has often seemed risky, confusing, or out of reach. Many rely on fintech startups or offshore exchanges to access digital currencies.
Morgan Stanley’s move changes that. It brings the world of crypto into a regulated, familiar setting. E-Trade is already a well-known platform used by millions. Adding crypto trading makes it even more powerful.
Retail investors will likely benefit from:
- Better security through bank-level protections.
- More transparency in trading fees and asset custody.
- Easier access to crypto through a platform they already trust.
Conclusion: A New Chapter for Crypto and Banking
Morgan Stanley’s plan to launch crypto trading for retail users by 2026 is more than just a new product launch. It reflects a larger trend—one where crypto is no longer on the edge of finance but moving to the center.
With government support, shifting regulations, and strong demand from everyday investors, the U.S. may finally be entering a new era of digital finance. And Morgan Stanley is helping to lead the way.
