Morgan Stanley is reportedly set to offer cryptocurrency trading on E-Trade, an investment brokerage and electronic trading platform that operates as a subsidiary of the bank.
According to a report by Bloomberg, the initiative will be supported by crypto and stablecoin infrastructure provider ZeroHash.
The partnership with ZeroHash, which is already collaborating with major financial institutions including Interactive Brokers, BlackRock’s BUIDL Fund, Franklin Templeton and Stripe, will serve as the infrastructure backbone for Morgan Stanley’s cryptocurrency trading plans including providing liquidity, custody and settlement services.
Jedd Finn, head of asset management at Morgan Stanley told the publication that the bank will initially provide trading services for major cryptocurrencies Bitcoin, Ether and Solana.
Finn added that coin trading represents “the first phase of a strategy” that will see E-trade build a comprehensive portfolio for clients starting next week.
The head of asset management explained that the service aims to provide clients with access to digitised assets, traditional assets and cryptocurrencies in the same ecosystem they are accustomed to.
“The underlying technology has been proven, and blockchain-based infrastructure is obviously here to stay,” he added.
The news comes after ZeroHash announced on Tuesday that it raised $104 million in a Series D funding round led by multinatinal brokerage firm Interactive Brokers.
Morgan Stanley was one of the investors participating in the funding round, along with other institutional investors including Apollo Managed Funds, Northwestern Mutual Future Ventures, SoFi, Jump Crypto and IMC.
Investors who have renewed their commitment include tastytrade, NYCA Partners and PEAK6 Strategic Capital.
The new capital injection brings the company’s value to £1 billion.
The company’s chief executive Edward Woodford said that the funds aim to fuel international growth, with a focus on regions that are growing interest in cryptocurrencies thanks to a more favourable regulatory environment.
This includes in the US, which in July passed the first major national cryptocurrency law aimed at establishing a clear regulatory framework for digital assets, marking a crucial moment for the cryptocurrency industry.
The law, called the Guiding and Establishing National Innovation for US Stablecoins (GENIUS Act), aims to provide clarity for issuers of stablecoins in the US and abroad, while ensuring consumer protection and combating money laundering.
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