Morgan Stanley, one of the world’s largest investment banks is stealthily developing a bitcoin trading product for its clients.
As per the latest Bloomberg reports, Morgan Stanley, sixth Largest bank in US is in the process of developing a proprietary derivatives product which would, in turn, provide traders ‘synthetic exposure’ to bitcoin prices.
An excerpt from the report states:
“The U.S. bank will deal in contracts that give investors synthetic exposure to the performance of Bitcoin, said the person, who asked not to be identified because the information is private. 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 person said.”
Notedly, Morgan Stanley’s CEO, James Gorman – had clearly stated earlier about the firm’s decision of not allowing their customers to trade cryptocurrency directly through the bank. But now it seems the firm is trying to be technically prepared to provide bitcoin swap offerings, owing to the demand from institutional investors.
Also, Morgan Stanley had approached Andrew Peel, Credit Suisse’s Expert, as their Crypto division head.
This news adds Morgan Stanley to the growing list of major financial players with an ever increasing interest to incorporate cryptocurrency into their institutional product lines. Goldman Sachs and Citigroup, are amongst the list of financial institutions vying to provide bitcoin derivatives product to their clients. JPMorgan also has been exploring the cryptocurrency investment circle, despite their CEO being openly and vocally critical about Bitcoin.
Interestingly, Intercontinental Exchange (ICE), world’s largest stock exchange operator have already stated their plan of launching the first physically delivered Bitcoin futures product, i.e. the contracts would be evaluated via Bitcoin rather than cash.