derivatives eboda 775x500 - Bloomberg: Morgan Stanley is Building a Cryptocurrency Product

Bloomberg: Morgan Stanley is Building a Cryptocurrency Product

One of the most important and largest investment banks all over the world, Morgan Stanley, is building a crypto-related product for its clients. The information has been released by Bloomberg yesterday, quoting people familiar with the matter.

Morgan Stanley to Offer Bitcoin Swap Trading

The famous investment bank is planning to offer trading in complex derivatives tied to Bitcoin (BTC). Morgan Stanley would be dealing in contracts that would provide investors exposure to the crypto market. All the information has been provided by a source that asked not to be identified.

With this specific product, investors could go long or short using price return swaps. The bank will be charging users a spread for each transaction performed.

Currently, Morgan Stanley is already prepared to offer Bitcoin swap trading. However, the institution must be sure that there is a clear interest from its clients before launching the product. Additionally, there are different steps that must be performed before the instrument is approved.

This shows that there is a clear interest from big Wall Street firms in offering Bitcoin- and crypto-related products.

According to a source from Morgan Stanley, volatility in the crypto markets is what clients are searching for.

“Price movements are everything for a trader. The largest the swings the better. As we execute or either the firm or institutional clients, the more volatility the better,” said the source. “Even the choppy movement in the equity indexes over the past three months have been useful in that regard.”

These products would be very positive for the market. They would allow an important number of institutional investors to have access to Bitcoin, and potentially, other cryptocurrencies.

There are different relevant financial companies that that are working on different bitcoin products. Citigroup, for example, is developing a mechanism for trading cryptocurrencies called digital asset receipts. At the same time, Goldman Sachs is exploring with derivatives on Bitcoin.

Coinbase has recently reached 500 staff employees in order to become the ‘NYSE for cryptocurrencies.’ According to Business Insider, the exchange is completely focused on becoming a fully SEC-regulated broker-dealer.

 

Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

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