Morgan Stanley Prepares Bitcoin Swaps For Trading
A financial conglomerate Morgan Stanley wants to begin selling bitcoin swaps, Bloomberg reports referring to the data from its informed source.
The American banking company intends to draft contracts that will allow investors to run long and short positions using swap contracts that imply a full refund method. In this case, Morgan Stanley will act as the owner of the underlying assets and will charge a commission for each transaction conducted by the investor.
From a technical point of view, the conglomerate could already have launched swap trading pegged to bitcoin. Nevertheless, the project will take force only when the interest among institutional clients in this campaign is confirmed.
The major Wall Street banks are trying to develop intensively the initiative proposed by Morgan Stanley, taking crypto assets as a basis, even despite the possible collapse of the crypto exchange rate. For instance, New York conglomerates the Goldman Sachs Group and Citigroup began to develop innovative products based on bitcoin, although it lost about 50% of its price in the current year.
According to the source, Morgan Stanley does not intend to trade exactly bitcoins, and swaps pegged to it will be pegged right to bitcoin futures.
In February 2018, James Gorman, the executive director of the banking holding, stated that their bank does not intend to carry out transactions for the crypto purchase and sale. The Morgan Stanley team will develop a special trading platform to support diverse financial derivative instruments pegged to crypto assets.
As previously reported, the bank corporation Citigroup plans to issue receipts for digital assets.