US banking conglomerate, Morgan Stanley is reportedly planning to add Bitcoin swap trading, joining other top banks and Wall Street firms to find new ways for its clients to invest in the highly volatile cryptocurrency market.
According to sources,” the Bank will deal in derivatives that give investors synthetic exposure to the performance of the world’s largest cryptocurrency, Bitcoin. ”
Morgan Stanley is already in a position to offer Bitcoin swap trading and will do an official launch once there is proven institutional client demand and after the completion of an internal approval process, also stated by the same source who want to remain anonymous because of the private nature of this information.
“Investors will have the option to go long or short using the so-called price return swaps with Morgan Stanley charging a spread for each transaction,” as per the source.
Another day another big bank offering a BTC related product to clients. Last week Citi, this week Morgan..
If speculation is the name of the game we could a see a serious surge soon!https://t.co/uIxzr9wtcC— Ran NeuNer (@cryptomanran) September 13, 2018
The news marks the latest commitment to Bitcoin from Wall Street. Last week, Goldman Sachs in a statement to CNBC clarified that the news circulating that they were abandoning plans to trade cryptocurrencies were baseless and completely fake.
Even with the market value for cryptocurrencies slashed in half, Wall Street giants are unfazed by it and are planning to offer sophisticated derivatives tied to digital assets and products tied to Bitcoin, the leading cryptocurrency in terms of market value.
According to the source, Morgan Stanley will not directly trade Bitcoin but instead, its swaps would be tied to Bitcoin futures contracts. James Gordan, the current CEO of Mogan Stanley in a statement earlier this year said that customers won’t be allowed to trade cryptocurrencies directly through the bank, but would instead build a trading desk to support various derivatives tied to digital assets.
Blockmanity’s Take
The increasing interest from Wall Street Giants is a good sign despite the year-long depreciation in the value of bitcoin and other cryptocurrencies. That might’ve been the reason that major U.S. banks were skeptical about entering this volatile space. We think this is just the start of many banks now starting to enter the world of cryptocurrencies.
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