An unnamed source confirmed to Bloomberg this week that Morgan Stanley is pursuing the example of other Wall Street players in developing Bitcoin-based products.
Though there are not any plans for direct cryptocurrency trading, Morgan Stanley is developing complex derivatives dependant upon Bitcoin futures. The planned bitcoin swaps or “price return swaps” enables investors to travel short term or long-term on the products, with Morgan Stanley charging an assortment on each transaction.
The source, who asked Bloomberg don’t be identified, says that Morgan Stanley is ready to offer Bitcoin swap trading, cause to undergo an internal approval process and also the market demonstrating proven institutional client demand.
The move by Morgan Stanley, mirroring similar plans by Wall Street’s Goldman Sachs to produce derivatives, or non-deliverable forwards, could itself fuel institutional demand.
So far, Morgan Stanley has declined to officially check out the plans. CEO James Gorman said recording the bank probably wouldn’t offer direct cryptocurrency trading, but right at that moment confirmed outline plans for your digital asset derivatives desk.
Currently, the cryptocurrency financial markets are waiting for a much-needed boost, institutional interest like that of Morgan Stanley and Goldman Sachs could deliver that market confidence. Other reports indicate that Nyse owners Citigroup also are planning a new vehicle for cryptocurrency investment called digital asset receipts .
Indeed, the race may have begun from the trading giants to get bitcoin-based products to your core institutional and professional investment base.
Last week “fake news” of Goldman Sachs’ withdrawal in the cryptocurrency desk plans caused a dip in Bitcoin prices before its Chief Financial Officer Martin Chavez put concerns to sleep in a speech along at the TechCrunch Disrupt Conference. Chavez confirmed Goldman Sachs will be ahead having a non-deliverable forwards products, as well as its plans for cryptocurrency custody services.