Morgan Stanley, an American multinational investment bank company, is preparing to offer its customers Bitcoin exchange swaps, according to Bloomberg.
As stated by an anonymous source, the American banking company will partake with other Wall Street firms in order to give the customers a chance to get involved with the cryptocurrency market. An anonymous source has also stated: “The U.S. bank will deal in contracts that give investors synthetic exposure to the performance of Bitcoin.” and 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,”
Technically, the Bank is already ready to submit the Bitcoin swap exchanging and will launch it after the conclusion of an internal approval process. A spokesman for Morgan Stanley has rejected to comment to Bloomberg about the leak.
There is a huge interest to digital assets from Wall Street’s biggest banks, even when the cryptocurrencies’ values fastly decreases. Companies like Goldman Sachs Group Inc. and Citigroup Inc., for example, are also getting ready for the new products, which will be related to Bitcoin.
Bloomberg’s anonymous sources uttered: “Morgan Stanley does not plan to trade Bitcoin directly and its swaps are tied to Bitcoin futures contracts,”
Chief Executive Officer James Gorman stated: “earlier this year that the bank wouldn’t let customers buy and sell cryptocurrencies directly through Morgan Stanley but would instead build a trading desk to support various derivatives tied to digital assets.”
Back in June, Morgan Stanley has employed Andrew Peel, as head of digital asset markets from Credit Suisse Group AG, according to the unknown source. The source continued: “Peel, based in Zurich, reports to Niall Dowling, Morgan Stanley’s global head of equities trading,”
Earlier this month, the unknown person, who is familiar with the plan explained: “Citigroup is developing a new mechanism for trading cryptocurrencies known as digital asset receipts,”. Goldman Sachs is searching for derivatives on Bitcoin defined as non-deliverable forwards as well as thinking to submit custody for crypto capitals.
Author: Berna Bayindir
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