Morgan Stanley is preparing to enter the crypto market in the hope of beating Wall Street competition and leaving long-time rival Goldman Sachs behind, says an anonymous insider.
Morgan Stanley accelerates entry into the Bitcoin code
According to an interview with an anonymous Morgan Stanley insider published by SludgeFeed, Morgan Stanley is in the process of adding Bitcoin code to its trading products. Their goal is to create a trading desk for institutional traders, ICOs and arbitrage, ahead of Goldman Sachs or one of the other major financial institutions.
The source claims that Morgan Stanley actively consults with managers and hedge funds that already have money in the crypto space and focus on “companies that are capable of expanding their current portfolios rather than starting from scratch”.
The anonymous source continues:
“TO BE HONEST, THAT’S THE NEXT ARMS RACE.” EVERYONE FALLS INTO CRYPTOS. EVERYONE. THERE IS NO BANK, NO FUND, NO FUND COMPANY, NO FORMER LEGEND TRYING TO REGAIN OLD GLORY, NO PRIVATE EQUITY, NO VENTURE CAPITAL, NO LOANS, NO STOCK EXCHANGES, NO CONSULTING FIRMS – EVERYONE. IT’S THE DIGITAL GOLD RUSH. AND OUR COMPANY WANTS TO PULL AS MANY LEVERS AS POSSIBLE.”
The race is on the Bitcoin trader
Nasdaq CEO Adena Friedman told CNBC’s Squawk Box last week that consideration was being given to creating a Bitcoin trader Exchange, which had the effect of Bitcoin trader reaching an all-time high on the CboE as institutional money flowed into the market.
Goldman Sachs has pointed out that it will set up its own crypto currency desk and has recently filled its first high-ranking crypto position. The company hired Justin Schmidt, a former trader, as vice president and head of Digital Asset Markets in Goldman’s securities division. The bank plans to launch its platform by the end of summer 2018.
London’s largest bank, Barclays, has even given indications that it will open its own crypto-desk after rumours of a possible partnership with Goldman Sachs.
Wall Street’s move into the crypto currency market seems inevitable as institutional investors are willing to invest money. The number of crypto hedge funds has increased eightfold since 2016, but remains limited by the possibilities, as no bank has yet occupied the niche of crypto services, which will change by the end of 2018.