Morgan Stanley to offer Bitcoin derivative trading


Morgan Stanley is joining other Wall Street firms in their effort of allowing their clients to venture in cryptocurrency trading. According to a Bloomberg report, the U.S.-based investment bank plans to offer its clients crypto-related derivatives.

The report states the bank has already built the infrastructure needed for the trading. However, they’re still waiting for confirmation of sufficient institutional demand.

As more firms are starting to acknowledge the amazing potential of digital currencies, an increasing number of Wall Street giants are starting to embrace the crypto industry, including Goldman Sachs, and Citigroup.

Trading platforms are beginning to use KYC and AML platforms, which has partly caused the spike of institutional interest regarding cryptocurrencies. While Morgan Stanley is a new player in the industry, they will not be offering direct Bitcoin trading, instead, they plan to provide their clients with long and short Bitcoin futures contracts.

Bloomberg’s report also mentioned the bank has the needed infrastructure already set up but is still waiting for an internal approval process to complete and for confirmation of “institutional client demand”.

Morgan Stanley is the sixth largest financial services firm in the U.S. and seems to have solid plans for becoming one of the pioneers of institutional Bitcoin trading.

Citigroup is another financial giant that aims to benefit the increasing institutional interest as sources hint the bank plans to issue digital asset receipts that will allow their clients to trade cryptos without directly owning the coins.

According to a Business Insider report, Goldman Sachs may have quit building a crypto trading desk. Martin Chaves, the bank’s CFO has officially denied the rumor, calling it fake news.