Morgan Stanley does not plan to trade Bitcoin directly and its swaps are tied to Bitcoin futures contracts, the person said. Chief Executive Officer James Gorman said earlier this year that the bank wouldn’t let customers buy and sell cryptocurrencies directly through Morgan Stanley, but would instead build a trading desk to support various derivatives tied to digital assets.
The bank hired Andrew Peel as head of digital asset markets from Credit Suisse Group AG in June, according to the person familiar with the plan. Peel, based in Zurich, reports to Niall Dowling, Morgan Stanley’s global head of equities trading, the person said.
Citigroup is developing a new mechanism for trading cryptocurrencies known as digital asset receipts, a person with knowledge of the plans said earlier this month. Goldman Sachs is exploring derivatives on Bitcoin called non-deliverable forwards, and is considering a plan to offer custody for crypto funds.