Morgan Stanley prepares to leave rivals behind
Banking giant Morgan Stanley is preparing to leave its rivals drowning in a pool of their own FUD as it prepares to add cryptocurrencies to its trading products.
The American multinational investment bank hopes to beat long-time Wall Street competitors, Goldman Sachs, according to insiders.
Speaking to SludgeFeed, a Morgan Stanley insider says the financial behemoth is moving quickly to capitalize on the crypto market.
According to the whistleblower, the bank’s goal is to create a specific desk for institutional traders, ICOs, and arbitrage.
And, they plan to do it before Goldman Sachs or any of the other major financial institutes do so.
Morgan Stanley is already actively consulting with hedge funds and money managers that already have money in the space.
It’s looking at those who are focused on “firms that are apt to add to their current portfolios as opposed to starting from scratch.”
The unnamed insider told the news outlet:
“Truth be told this is the next arms race. EVERYONE IS RUSHING INTO CRYPTOS.
“Everyone. There isn’t a bank, a fund, a fund company, a former legend attempting to reclaim old glory, private equity, venture capital, lending, exchanges, consulting firms – everybody. It is the digital gold rush. And our firm wants to get there and pull as many levers as we can.”
The Race is On
Retail investment in cryptocurrency is becoming inevitable.
It’s apparent that more and more of the old guard are tossing their hats into the ring.
Speaking to CNBC’s Squawk Box last week, Nasdaq CEO Adena Friedman revealed that creating a Nasdaq cryptocurrency exchange is under consideration.
In an effort not to be left behind, Goldman Sachs has been hinting that it may set up a cryptocurrency trading desk.
The firm says it recently filled its first high-level crypto-centric position.
The banks has also hired former crypto trader, Justin Schmidt, as vice president and head of digital asset markets in Goldman’s securities division.
By the end of summer 2018, the bank plans to have its cryptocurrency trading platform up and running.
Barclays, London’s largest bank, has also made suggestions that it will launch it’s own cryptocurrency trading desk.
This follows rumors about a possible partnership with Goldman Sachs and gave confirmation it was dealing with Coinbase.
As institutional investors are all set to push money into the space, Wall Street’s move into the digital assets market seems inevitable.
Since 2016, the number of cryptocurrency hedge funds has increased eight-fold.
As of yet, no banks have filled the niche of providing cryptocurrency services.
By all indications, however, this will change before the end of 2018.