Wall Street firms and big banks are trying to enter the world of cryptocurrency trading. Goldman Sachs, Morgan Stanley, and others are exploring the idea of setting up a cryptocurrency trading desk at some point. It is difficult to estimate who will come to market first, although insiders claim Morgan Stanley is the dark horse to keep an eye on. It’s an interesting development that will only spark more interest in Bitcoin and other cryptos.
Morgan Stanley is Enamored with Cryptocurrency
Anyone who has kept an eye on the cryptocurrency industry over the past few years will have noticed a peculiar trend. At first, banks readily dismissed the idea of Bitcoin as both a potential currency and a threat to their business model. This was at the time when BTC was only just gaining popularity, yet banks advised consumers to stay away from this industry rather than risk losing their money.
Over the years, this conversation has changed a bit. When warnings did not have the desired effect, banks prevented consumers from buying cryptocurrency. They either blocked transfers from consumer accounts to exchanges, or they simply shut down the bank accounts of major exchanges without any official explanation. This course of action has worked for a while, yet very few people have actually been affected.
The only option left on the table is for banks to provide cryptocurrency trading services themselves. That appears to be the new plan for Goldman Sachs, Morgan Stanley, and a few other financial institutions. This completely different mindset was coming for some time, as everyone knows the banks have manipulated the price of cryptocurrencies for several years now. With no other options remaining, launching a cryptocurrency trading desk has become the new top priority.
Launching such a project is not easy by any means. This is especially true in the United States, where cryptocurrencies remain largely unregulated as of right now. It seems Morgan Stanley wants to ensure it is the first financial institution to offer cryptocurrency trading to its clients.
In fact, it appears Morgan Stanley is focusing virtually all of its attention on cryptocurrency trading as of right now. The offering will encompass traditional trading, ICOs, arbitrage, and solutions for institutional traders. Moreover, the group wants to collaborate with hedge funds and money managers to ensure there is sufficient liquidity and potential for users to play around with from day one. It is a new digital gold rush, but one that won’t be successful for everyone.
Assuming there is any truth to these rumors, things will soon get very interesting for the cryptocurrency industry. With more and more people showing an affinity for Bitcoin and the top altcoins, there may be an influx of new capital to push the value of individual cryptocurrencies higher. Having said that, there are still a lot of people who genuinely want to see cryptocurrencies disappear, and these trading desks will make it easier for them to short Bitcoin and altcoins accordingly.