Morgan Stanley has announced a multi-pronged expansion into digital assets that includes a proprietary digital wallet, ETF filings and new trading capabilities. The moves aim to give institutional and wealth-management clients regulated custody and access to cryptocurrencies and tokenized securities.
The bank filed for cryptocurrency ETFs in early January 2026 and plans to roll out E*Trade crypto trading in the first half of 2026, while the digital-wallet launch is scheduled for the second half of 2026. These initiatives are positioned as a controlled path for clients to access BTC, ETH, SOL and tokenized real-world assets.
Morgan Stanley’s plan bundles several initiatives. The firm filed registration statements for crypto ETFs in early January 2026, marking an immediate regulatory step to offer passive exposure to major cryptocurrencies. E*Trade will add direct trading for Bitcoin, Ethereum and Solana in the first half of 2026, widening retail access through the broker platform.
The digital asset wallet is slated for release in the second half of 2026 and is being built primarily for institutional investors and high‑net‑worth clients, though broader access was implied. The wallet will focus on secure custody—combining multi‑party computation (MPC) and cold storage techniques—and expand to support tokenized private equity, traditional securities and other real‑world assets in addition to major cryptocurrencies.
Operationally, the initiative leans on the firm’s existing wealth-management distribution. Morgan Stanley broadened access to crypto products for wealth clients starting in October 2025, and its Expansion Capital division and scale (the firm manages approximately $1.8 trillion in assets; total assets were reported at $1,364.806 billion in Q3 2025) provide the balance-sheet and distribution capacity to launch complex digital-asset infrastructure.
Market implications for Morgan Stanley wallet
The package signals a strategic institutional embrace of digital assets. By combining regulated ETFs, retail trading through E*Trade and proprietary custody, Morgan Stanley is lowering onboarding frictions for clients who previously relied on third‑party providers.
Risk management language in the filings and public commentary indicates a guarded posture: the firm has suggested conservative allocation guidance (2%–4% for certain portfolio types), and its product design prioritizes regulated structures and secure custody.
For institutional investors and advisors the key tests lie ahead: the E*Trade trading rollout in the first half of 2026 and the wallet release in the second half of 2026. These implementations will be the ultimate tests of whether Morgan Stanley can convert regulatory approvals, custody technology and distribution scale into durable client flows and meaningful participation in tokenized markets.
