Wall Street Embraces Cryptocurrency: Banks and Brokers Move to Offer Bitcoin and Ether
Wall Street banks and brokerages are preparing to offer Bitcoin and Ether as demand surges, accelerating tokenized assets and 24/7 trading access worldwide.
Wall Street embraces cryptocurrency in a move industry leaders say marks a historic pivot for traditional finance as banks, brokerages and exchanges prepare to make major digital assets available to clients. Executives at leading firms and crypto platforms told Axios this shift responds to sustained retail and institutional demand for Bitcoin, Ether and tokenized securities. The change is framed as the defining financial development of 2026 by senior industry figures.
Major firms to list Bitcoin and Ether for clients
David Ripley, co‑CEO of Kraken, told Axios that mainstream financial services firms will soon offer core cryptocurrencies like Bitcoin and Ether to their customer bases. He described the evolution as a watershed moment that resolves years of friction between Wall Street institutions and the crypto ecosystem. Ripley said banks and brokerages are reacting to clear client demand across retail investors, high‑net‑worth individuals and institutional allocators.
Traditional firms moving to list crypto products signals a reorientation of custody, compliance and client service models across the financial sector. Firms planning to onboard crypto are investing in custodial infrastructure and regulatory compliance to accommodate assets that trade around the clock. The expansion aims to provide parity of access while managing operational and supervisory risks.
Technology trends driving institutional acceptance
Industry executives point to intersecting technological trends — artificial intelligence, stablecoins and tokenization — as major catalysts for the shift. These technologies lower costs, speed settlement and enable programmatic ownership of traditional assets in blockchain form. Stablecoins, in particular, have demonstrated investor appetite for blockchain‑native representations of value, prompting broader interest in tokenized equities and debt.
Market participants expect tokenization to move beyond niche applications and into mainstream capital markets, where digital representations of shares could coexist with conventional listings. Supporters argue tokenized instruments can expand liquidity, shorten settlement cycles and create new avenues for retail participation. Critics continue to cite regulatory and custody challenges that will require careful policy coordination.
Nasdaq says U.S. markets can absorb a wave of IPOs
Sarah Youngwood, chief financial officer of Nasdaq, told Axios that U.S. markets possess the depth to absorb a large pipeline of public offerings without rule changes. She said the exchange is prepared to list both established tech giants and smaller AI‑driven startups, and that existing market structure can scale to handle increased issuance. Nasdaq executives are also exploring extended trading hours to better align with global, digital markets.
Market officials expect several high‑profile listings to put this capacity to the test, with reports naming companies preparing filings that could together represent trillions in market value. Exchanges are weighing operational changes, such as expanded hours or new trading protocols, to harmonize conventional and tokenized markets. Regulators and market operators will need to balance innovation with investor protection as these initiatives advance.
Trading hours and the rise of continuous markets
One of the clearest friction points between traditional and crypto markets is time‑of‑day accessibility, since cryptocurrency trading already operates 24/7. Executives note that extending or shifting trading hours on equity markets could reduce arbitrage frictions and better serve global investors. Some exchanges are piloting later sessions or staggered trading windows to test liquidity and execution quality outside standard hours.
Continuous trading models may also facilitate faster price discovery for tokenized assets that mirror equities or other securities. Market participants caution that extended hours present risks, including lower liquidity and increased volatility in off‑peak sessions. Operators say any change will be incremental, accompanied by monitoring and safeguards to protect retail investors.
Impacts for retail and institutional investors
Proponents argue the move will democratize access to assets historically limited to early‑stage investors or institutional allocators, allowing more retail participation in high‑growth companies. Kraken and other platforms have already announced plans to offer tokenized IPO shares to retail users, a development that could broaden ownership but raises questions about investor suitability and disclosure. Institutions see benefits in more efficient settlement and programmable asset features.
At the same time, financial advisers and compliance teams must update suitability frameworks and custody arrangements to accommodate digital assets. The integration of crypto products into mainstream brokerages could accelerate adoption but will require clear disclosures on custody, counterparty and technology risks. Observers expect a period of mutual adaptation as client demand and regulatory expectations evolve.
Tokenized IPOs could reshape capital formation
Executives say the next major frontier is tokenized public offerings, where shares are issued and traded in blockchain form alongside traditional listings. Tokenized IPOs promise new distribution methods that can reach retail investors directly and enable fractional ownership. Companies and exchanges testing these models argue tokenization could unlock broader investor bases and more flexible secondary markets.
Skeptics warn that tokenized IPOs will only scale if legal and regulatory frameworks keep pace, and if primary market processes maintain transparency and investor protections. Market infrastructure providers are racing to establish custody, compliance and settlement systems that can support hybrid models. The outcome will hinge on coordination among issuers, exchanges and regulators.
Momentum toward making cryptocurrency widely available through traditional channels reflects a significant reappraisal of digital assets by major financial institutions. As banks and brokerages roll out new offerings, regulators, exchanges and investors will closely monitor implementation, market integrity and the impact on capital‑raising practices. The coming months are likely to reveal whether tokenized markets can integrate smoothly with established financial systems while delivering the promised gains in access and efficiency.
