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Kristina Frunze

14 September 2018

Cryptocurrency

Morgan Stanley to Offer Bitcoin Trade Swaps

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Morgan Stanley is up to offer Bitcoin trade swaps, according to the latest news coming from online reports, while the company did not officially confirm the news yet, media outlets are citing anonymous sources claiming that Morgan Stanley “will deal in contracts that give investors synthetic exposure to the performance of Bitcoin.

14 September, AtoZ MarketsThe US banking giant Morgan Stanley is reportedly planning to offer its clients an opportunity to trade Bitcoin trade swaps, according to a number of online reports. 

Bitcoin Trade Swaps Offering on the Agenda

These reports note that anonymous sources have revealed this information to them, as they cite “people familiar with the matter”. One of the news outlets states that the US multinational banking company is ready to follow the lead of most of the fellow Wall Street players in regards to pursuing Bitcoin exposure options. 

As per the sources, Morgan Stanley “will deal in contracts that give investors synthetic exposure to the performance of Bitcoin. 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.”

The news appears as the latest indicator of Bitcoin interest coming from this Wall Street giant. Earlier last week, another banking company Goldman Sachs has denied the news about the scrape off of their plans to release a Bitcoin trading desk.

Goldman Sachs Refutes News About Crypto Desk

AtoZ Markets had reported that the Chief Financial Officer (CFO) of Goldman Sachs, Martin Chavez, has claimed that recent reports about the company scraping off its plans to open a crypto trading desk are “fake news.” 

According to some of the online reports, the CFO of Goldman Sachs has stated that the latest news about the company is not true. During the TechCrunch Disrupt Conference in San Francisco, Mr. Chavez has reportedly denied that the news about the company’s plans for a cryptocurrency trading desk was unfounded. He has been quoted as saying:

"I never thought I would hear myself use this term but I really have to describe that news as fake news."

In fact, Goldman Sachs has been already providing liquidity and clearing for Bitcoin futures contracts from the CME and CBOE. At the same time, Mr. Chavez stated that there is a need for a reliable custody solution before the bank will be able to proceed with physical Bitcoin.

Wall Street Giants Show Crypto Interest

Coming back to the news about Morgan Stanley, they did not provide any official comments on this case, the reports say.

Complementing the unconfirmed plans from Morgan Stanley, earlier last week, another banking giant Citigroup has reportedly hinted that it considers an entry into Bitcoin trade products.

Just like the offerings from Goldman and Morgan Stanley, Citigroup’s clients would be enabled to gain exposure to Bitcoin markets without actually holding any of the cryptocurrencies directly. This is known as non-custodial trading. 

It is known that some of the cryptocurrency market insiders have appeared skeptical of the inflow of institutional investors into the cryptocurrency market via the non-custodial methods. 

Think we missed something? Let us know in the comments section below.

Wall Street Bitcoin News Morgan Stanley
The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZMarketz.com, nor should they be attributed to AtoZMarkets.

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