Morgan Stanley near to offering BTC trading
An anonymous source has claimed banking titan Morgan Stanley will make BTC trade swaps available to clients. Bloomberg leaked the news earlier today citing “people familiar with the matter”.
Morgan Stanley claimed the Bloomberg source “will deal in contracts that give investors synthetic exposure to the performance of Bitcoin”.
It added: “Investors will be able to go long or short using the so-called price return swaps, and Morgan Stanley will charge a spread for each transaction”.
Morgan Stanley has not offered any comment on the story. It’s likely the bank will offer its crypto-related product once demand starts to build from institutional clients. Previously CEO of Morgan Stanley, James Gorman, said the bank would not trade BTC directly.
Client demand in the wings?
Morgan Stanley hired – it’s thought – Andrew Peel from Credit Suisse in the summer as head of digital assets, according to Bloomberg. Peel was responsible for derivatives trading for nine years before handling sales and innovation with a focus on digital coins.
Citigroup is developing a new mechanism for trading cryptocurrencies known as digital asset receipts, a person with knowledge of the plans told Bloomberg earlier this month.
Bloomberg believes Goldman Sachs “is exploring derivatives on Bitcoin called non-deliverable forwards, and is considering a plan to offer custody for crypto funds”.