Morgan Stanley will launch a proprietary digital asset wallet in the second half of 2026 to broaden client access to tokenized assets and to complement a wider push into crypto products. The move is paired with recent SEC filings for spot crypto ETFs and a planned expansion of trading on the E*Trade platform.
By 2026, the digital asset ecosystem is set for a major expansion driven by the convergence of traditional finance and crypto-native services. E*Trade is expected to enable trading for Bitcoin, Ether, and Solana in the first half of the year, followed by the launch of a dedicated digital asset wallet scheduled for the second half of 2026.
This infrastructure is supported by a wave of regulatory filings, specifically S-1 registration statements submitted to the SEC for spot Bitcoin, Ether, and Solana ETFs, as well as a pioneering staked-Ether ETF filed prior to January 9, 2026.
The wallet is described in the firm’s disclosures as intended to support traditional cryptocurrencies and tokenized real‑world assets (RWAs) — including private equity, stocks, bonds and real estate — and to provide institutional-grade custody and related functions such as lending or borrowing against crypto collateral. Morgan Stanley framed the offering as “a regulated, institutional-grade custody solution” in filings.
Alongside these technical milestones, new financial guidance is shaping how digital assets are integrated into professional portfolios. Current advisor recommendations suggest a strategic approach to crypto exposure, citing an allocation of up to 4% for aggressive portfolios and 2% for balanced portfolios.
These guidelines reflect a growing institutional standard for digital assets, positioning them as a legitimate component of a diversified investment strategy heading into the mid-2020s.
Regulatory record and market implications
Morgan Stanley has already submitted registration documents with the Securities and Exchange Commission for multiple spot ETFs and a staked Ether product, a step that occurred before Jan. 9, 2026. Those filings aim to place regulated crypto exposure inside the bank’s wealth ecosystem rather than only through outside vehicles.
The combined strategy — ETFs, wallet custody and E*Trade trading — is positioned to accelerate institutional and wealth‑client adoption by embedding crypto into familiar account structures and adviser workflows. For markets, the integration targets increased liquidity for tokenized RWAs and mainstream portfolio allocations; for compliance and operations, it raises questions about custody controls, KYC/AML processes and the mechanics of staking within a regulated fund structure.
Investors and compliance teams are now focused on the E*Trade trading rollout in the first half of 2026 and the wallet launch in the second half of 2026, which will serve as practical tests of whether tokenization and institutional custody can broaden access, preserve investor protections and drive measurable inflows into the digital‑asset channel.
