Last week, Goldman Sachs confirmed that it is exploring a new Bitcoin derivative for its clients. This week, Bloomberg has reported that Morgan Stanley is also planning to offer its clients Bitcoin derivative trading. The report cited an unnamed “person familiar with the matter” who revealed details of the the bank’s plans.
According to the report:
The U.S. bank will deal in contracts that give investors synthetic exposure to the performance of Bitcoin, said the person, who asked not to be identified because the information is private. 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, the person said.
The news is part of a larger trend, as many of the nation’s top banking institutions are reportedly exploring new ways to offer their clients Bitcoin-related products. Morgan Stanley has previously acknowledged that the bank is exploring options for creating a trading desk for digital currency derivatives.
Bloomberg’s source said that Morgan Stanley already has the technical capabilities to offer the proposed trading, but that the internal approval process for the plan has not been completed. The bank plans to launch the trading option once it confirms demand from institutional clients.
Bloomberg reportedly reached out to the bank for confirmation, but Morgan Stanley’s spokesperson declined to comment.