Morgan Stanley is one of the largest investment banks worldwide. As of yesterday, they confirmed that they are working on a crypto-related product for their clients.
According to Bloomberg, this is new, reliable information that comes from familiar names in the crypto community. Morgan Stanley is planning to offer to trade with complex derivatives that are connected to bitcoin. The bank will provide contracts to the investors so they will have a clear exposure to the market. This way, investors can use the price return swaps and the bank will charge them for each processed transaction.
Before officially launching the project, Morgan Stanley has to make sure that there is actually interest from clients. Currently, the biggest interest comes from large Wall Street companies that offer similar crypto-related products. If we listen to the clients we will find out that:
“Price movements are everything for a trader. The largest the swings the better. As we execute or either the firm or institutional clients, the more volatility the better,” said the source. “Even the choppy movement in the equity indexes over the past three months have been useful in that regard.”
The bank guarantees that products such as this one will be very beneficial for the market. Also, a product like this one will make a larger number of institutional investors to have a better access to bitcoin and other cryptocurrencies. Other financial companies such as Citigroup are working on a trading crypto mechanism, and Goldman Sachs is exploring with derivatives on bitcoin.
According to a source, the product is set to launch soon so make sure to follow up on our news so you don’t miss out on it.
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