The barriers dividing Wall Street and crypto continue to dissolve. And Morgan Stanley just made it official—the firm’s launching its own digital asset wallet, and it’s a bigger deal than most people realize.
The investment bank plans to introduce the wallet in 2026. It will be able to support cryptocurrencies and real-world tokenized assets (RWAs), including stocks, bonds, and real estate holdings, with plans to support more over time.
Jedd Finn, who heads wealth management at Morgan Stanley, says the move recognizes that financial infrastructure is fundamentally changing under everyone’s feet. Finn said that as infrastructure improves, the firm expects to blend traditional finance with decentralized finance ecosystems far more effectively.
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ETF Filings Show Deeper Commitment
This week, Morgan Stanley filed registration statements with the U.S. Securities and Exchange Commission for exchange-traded funds (ETFs) that aim to track Bitcoin, Ethereum, and Solana. The timing caught people off guard—Bloomberg Intelligence analyst James Seyffart admitted he didn’t see this coming, even after spending years predicting that institutions would eventually warm up to digital assets.
The bank also filed for a staked Ethereum ETF that will generate staking income by locking up fund holdings to secure blockchain networks. This shows that Morgan Stanley is keen to explore different ways of getting returns in crypto beyond just price appreciation.
Opening Doors for More Clients
Moreover, earlier, Morgan Stanley used to limit cryptocurrency investments to wealthy clients with at least $1.5 million in investable assets. That changed in October when the firm opened crypto access to all client accounts, including retirement plans. The shift came after President Donald Trump signed an executive order on the matter.
The expansion follows September’s announcement that E*Trade platform users would get Bitcoin, Solana, and Ethereum trading during the first half of 2026. Morgan Stanley put money behind this plan, participating in Zerohash’s $104 million funding round last September.
The bank now tells clients they should consider conservative crypto allocations—up to 4% for aggressive portfolios and 2% for balanced ones. Spot Bitcoin ETFs have pulled in over $130 billion since regulators approved them in January 2024, with BlackRock’s IBIT fund setting records as the fastest-growing ETF ever launched.
