Morgan Stanley Becomes Second Wall Street Bank to Clear Bitcoin Futures

The demand for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term futures has continued to rise in 2018, prompting Morgan Stanley to join the growing ranks of big banks responsible for Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term these contracts. The development follows after last month’s announcement that Goldman Sachs would clear Bitcoin futures for select institutional clients.

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In December, both CME Group and CBOE launched Bitcoin futures, which have by and large seen early success and popularity despite some minor setbacks. In parallel, Morgan Stanley has become only the second bank to clear futures contracts for big institutional clients. Bloomberg has reported that Morgan Stanley has entered into this space, which includes a growing emphasis on how to handle and engage with cryptos.

Morgan Stanley’s Chief Financial Officer, Jonathan Pruzan, reiterated this sentiment, noting: “If someone wants to do a trade on the futures and settle in cash, we’ll do that. I wouldn’t say it’s been a lot of activity, but it’s for core institutional clients who want to participate in a derivatives transaction.”

Indeed, Wall Street banks and other venues have finally started to embrace cryptos, namely Bitcoin futures. As the only two players so far to make the foray into Bitcoin futures clearing, Morgan Stanley and Goldman Sachs are in uncharted territory.

The stance echoes that of Goldman Sachs, which underscores a limited, albeit established niche of Bitcoin futures clearing for specific clients. Like Goldman, Morgan Stanley has yet to reveal any plans to act in anything beyond an agency capacity.

Morgan Stanley’s management is keeping mum on the subject, giving no indication as to whether it would take additional steps to get involved with market making or other custodial responsibilities involving cryptos. For now, the bank’s focus appears to be limited only to clearing, though the demand from big institutional clients could ultimately foreshadow other players entering the market.