Bloomberg: Morgan Stanley Clients Might Be Exposed to BTC Swap Trading

Bloomberg: Morgan Stanley Clients Might Be Exposed to BTC Swap Trading

Referring to insiders, Bloomberg reports that the American multinational investment bank Morgan Stanley is jumping on a crypto-bandwagon. According to the report, the company might offer bitcoin swap trading to its customers. Therefore, it may join Wall Street entities in the race of exposing their clients to the market of digital currencies.

Not Sure, But Possible

Morgan Stanley clients may soon get an opportunity to trade in complex derivatives which will be bound to bitcoin, the most valuable cyber-asset in the world. The move is reportedly planned by the financial company, informs Bloomberg citing an anonymous source. 

Our top trading bots

How Will It Work? 

Morgan Stanley, perhaps, intends to work with contracts which expose investors to the execution of bitcoin. Moreover, the investors will use soi-disant price return swaps. These will allow them to go either short or long. Finally, the American bank will charge a spread for each operation, the news agency singles out. 

In fact, the bank is not going to trade BTC directly. The insider underscored the swaps will be bound to BTC-futures. Even earlier in 2018, the bank’s top executive James Gorman made it clear that the bank has no intentions to let its users purchase and vend cryptos directly via the entity. As an alternative, it would establish a trading desk for aiding different crypto-related derivatives. 

For the purpose, Morgan Stanley engaged Andrew Peel who from now on will be ruling over virtual coin markets. Previously, Peel worked for Credit Suisse Group AG, and he came to Morgan Stanley earlier this summer, as the source notified. 

When Will the BTC Swap Trading Be Launched?

According to the private information, Morgan Stanley is already ready for the BTC swap trading in terms of technical aspect. The launch of the project will occur when two things happen. Firstly, there must be a reasonable demand from institutional investors, the source highlighted. And secondly, Morgan Stanley has to finalize the approval of the idea from the within. It is noteworthy that the official representative of the American ban refused to commentate on the issue.

Morgan Stanley Isn’t Alone

Due to the high volatility of the actual cyber-assets market and problematic regulatory issues in the niche, many considerable banks look for additional options for exposing their clients to the world of cryptos. For instance, Wall Street’s banks are advancing with ideas for complex financial products which would be highly connected to bitcoin or its brethren. The fact that their prices go beneath derivatives does not stop them. 

Among other significant financial world players which are getting ready for embracing bitcoin products, are Goldman Sachs and Citigroup. Both companies are preparing novel BTC-based products. In the meantime, bitcoin is losing its positions. Since the last year, this coin has lost over 65% of its value and is not showing any upward trends.

While Citigroup is elaborating on a new system for trading virtual assets, Goldman Sachs is studying the case of BTC-derivatives which are labelled non-deliverable forwards. Furthermore, the latter also plans to offer guardianship to funds of digital assets. 

Image Source: Flickr

Next up, Bitcoin ETF by Fidelity: Crypto funds batting .000 against SEC
With more than 35 million customers, $21 billion in revenues and $3.8 trillion in discretionary managed assets, Fidelity Investments is one of the largest...
Institutional inflows into crypto hit lowest levels since October
Capital flows into cryptocurrency investment products rose again last week, though the pace of growth has slowed since the start of the year, possibly marking...
OKCoin Founder Was Detained in China Amid Fraud Allegations
The founding father of the second largest cyber-money bourse on the planet OKCoin was reportedly detained on the occasion of suspected crypto-scam. According...
IBM, Alibaba or Bank of America? Here’s Who Filed The Most Blockchain Patents
DLT has become a cornerstone of a rivalry between prima tech and financial titans, IBM, Alibaba, and Bank of America. Two companies are fighting for the...
ETN Allows Americans to Acquire BTC Without Buying it
It is now possible to purchase the “big daddy” bitcoin without actually acquiring it. And the thing is not in the long-anticipated launch of the ETF which...
Cryptos Will Be Available in Any World’s Country, Says US CFTC Commissioner
As the world (including the US) keeps struggling on finding the right ways to regulate bitcoin and its brethren, the commissioner of the Commodities...
Huobi Launches Trading in South Korea With 100 Cryptos
Despite the fact that the South Korean government has become colder towards cryptos since the end of 2017, a new cyber money trading venue has announced...
Securities or Not? Israeli SAC Clarified its Position on Cryptos
Israel clarified how it is going to classify bitcoin and its ilks – as securities or not. The country’s Securities Authority Committee, which is focused...
Hackers Mined Cryptocurrency through The Cloud Account Of Tesla On Amazon
An unknown hacker (or a group of hackers) got access to Tesla's account on Amazon cloud and used it to clear the cryptocurrency.Researchers of the department...
Hong Kong’s Financial Regulator Vowed to Keep an Eye on Cryptos and ICOs
Hong Kong is believed to be a freer place for crypto enthusiasts. BTCC exchange case alone is enough to prove it. At the end of January, one of the oldest...
Stock & Crypto Markets Plummeting Down. Any Correlation?
Within the past days, both stock and crypto markets have been heading downwards. Both of them started showing some drastic trends on Friday, February 2...
The Most Disappointing Cryptocurrency
Analytical service CoinDesk called the Ripple-XRP cryptocurrency the biggest disappointment for investors.It is noted that XRP in January was able to grow...
‘Bitcoin is a Fork, Bitcoin Cash is The Authentic Blockchain’ – US Government Scientists
The chicken or the egg? It seems that this question is more than relevant in the crypto sphere. However, the words 'chicken' and 'egg' better be replaced...
Good Or Evil? Blockchain Yields Tech Benefits But Can Leave People Jobless
There was no other rival in the investment sphere for stocks as cryptos. But for those, who are not very interested in trading, there is an alternative...
Bitcoin vs. Altcoins: Why to Consider Various Options for Investment
It is somewhat difficult to imagine how a middle-class person can purchase one bitcoin, at a price of around $15,000, at a time. No wonder that lots of...