Morgan Stanley one of the worlds largest financial institution is creating a product ‘Bitcoin swap trading’ for its clients to trade Bitcoin.
According to Bloomberg, Morgan Stanley is planning to offer to trade in complex derivatives for Bitcoin, that give traders synthetic exposure to the performance of Bitcoin. This approach is to create ways for their clients to engage in the cryptocurrency market.
James Gorman, CEO of Morgan Stanley stated that the company will not let customers trade cryptocurrencies directly but instead they will introduce a trading desk which would support cryptocurrency trading.
The person that tipped this news to Bloomberg remains anonymous. Also, he said that.
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.
Morgan Stanley is technically prepared to offer Bitcoin swap trading but they are still waiting for the internal approval process. Also, the bank is also checking on client demand on cryptocurrency trading. On this basis, they will then release the service for its clients.
Also, Morgan Stanley has hired Andrew Peel of Investment firm Credit Suisse Group. Peel will be working as head of digital asset markets of the new cryptocurrency division.
The banks are currently interested in the cryptocurrency sector. And Recently we also saw Goldman Sachs is planning to manage Bitcoin for its clients who have already invested in it. This is all due to clients requirements and the emerging markets making financial institutions to join the crypto bandwagon.
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