- Morgan Stanley to offer Bitcoin Swap Trading for Customers.
- However, Bitcoin would not be traded directly by the Bank,Â instead, its swaps would be tied to Bitcoin futures contracts.
According to a source who asked to remain anonymous as the info is still private, Morgan Stanley may soon join other Wall Street firms to provide ways through which customers can participate better in the cryptocurrency market as it currently has the plan to offer Bitcoin trade swap to customers.
The anonymous source revealed that Morgan Stanley has the plan to deal in contracts that will provide investors with a synthetic exposure to the performance of the largest cryptocurrency. As a result of that, investors would be able to use the use the price return swaps to either go short or long. And per transaction, Morgan Stanley will charge the customers.
The anonymous source added that Morgan Stanley has put everything in place to launch the Bitcoin swap trading and will kick off trading once the internal approval process is completed and there is demand from institutional investors. However, endeavor to reach a Morgan Stanley spokesman was futile as he refused to say anything on the initiative.
Even amidst the cryptocurrency price crash, Wall Street’s largest biggest banks are making a relentless effort to provide clients with sophisticated derivatives tied to cryptocurrencies. Both Citigroup Inc. and Goldman Sachs Group Inc. are also making plans to launch new products tied to Bitcoin. While Citigroup Inc. is setting up “digital asset receipts” – a new system for trading digital currencies, Goldman Sachs Group Inc. is investigating Bitcoin derivatives known as “non-deliverable forwards” and is also planning on offering custody for cryptocurrency funds.
The source explained that Bitcoin would not be traded directly by the Bank, instead, its swaps would be tied to Bitcoin futures contracts. James Gorman, Morgan Stanley’s CEO, stated earlier this year that client will not be allowed to trade digital currencies directly through the bank. Rather, Morgan Stanley will create a trading desk that will support different cryptocurrencies derivatives.
According to the source, Andrew Peel from Credit Suisse Group AG has been hired by the bank as its head of cryptocurrency markets. Andrew would in turn report to the bank’s global head of equities trading, Niall Dowling.
Offering Bitcoin swap trading for customers, especially institutional investors may bring a positive trend to the price of Bitcoin.