In this picture, the logo of e-trade, an online trading platform owned by Morgan Stanley, will appear on the company’s website in Chicago, Illinois on May 13, 2024.
Scott Olson | Getty Images
Morgan Stanley has been a few months away from offering crypto trading to retail customers through the e-Trade Division as the Wall Street giant embraces what is called a transformative moment for the asset management industry.
According to a memo obtained by CNBC, the company is working with startup Zero Hash, which has also gained investment interest.
“We are on track as we prepare to offer crypto trading to e-trade clients through our partner model in the first half of 2026,” said Jed Finn, head of wealth management at Morgan Stanley.
Morgan Stanley is prepared for a future where wealthy clients expect to see traditional and digital assets managed in the same environment, Finn said. Banks are working on a “robust wallet infrastructure” that allows them to become managers of digital assets for IT clients, an important part of their strategy.
“Giving clients the ability to exchange cryptography is the tip of the iceberg,” he said.
The bank expects it to help its clients not only retain crypto but also tokenized versions of traditional financial assets, according to the memo. Tokenization – Or, the digital representation of assets on the blockchain, including cash, equities, bonds and real estate, “significantly disrupted” the asset management industry, Finn said.
“Cash tokenized alternatives start paying interest as soon as they hit your wallet,” Finn said. “The remaining asset classes will follow suit when seeking this efficiency.”
“The cryptocurrency space sees a wider and vast power, not just Crypto as an investment in clients, but also around DLT and tokenization,” he said using the concept behind blockchain, using the acronym for distributed ledger technology.