- Telecommunications Giant Vodafone Leaves the Libra Association
- Group of Central Banks Assesses Developing Central Bank Digital Currencies
- South Korea Might Impose 20 Percent Tax on Cryptocurrency Profits
- Report: Terrorists Increasingly Use Crypto to Raise Funds Anonymously
- Canadian Securities Administrators Subject Crypto Exchanges to Securities Laws
Some would argue that this is utterly unexpected and some would claim that it was only a matter of time: in a recent barrage of fresh updates from the conventional financial world, several of the largest banks in the world – Citigroup, Morgan Stanley and Goldman Sachs – have made some significant steps toward cryptocurrency.
On September 9, anonymous sources revealed to Business Insider that Citigroup intends to roll out in an unspecified future date a new crypto product, which carries less of a risk than investing directly in crypto. According to the report, Citigroup’s new crypto product will be based on a kind of existing security – the American Depositary Receipts (ADR) – that was originally designed to represent collective securities of companies outside of the U.S. The sources went on to detail that the new crypto product will be dubbed Digital Asset Receipt (DAR) and will function in the same manner as the ADR.
Another banking titan, Morgan Stanley, is also reported to enable new crypto-trading options for its clients. Bloomberg reports that according to “a person familiar with the matter” who asked to remain unidentified, Morgan Stanley aims to launch “Bitcoin swap trading”; this is essentially derivatives that are linked to Bitcoin and allow investors both long and short trades. Similarly to Citigroup’s reported DAR, Morgan Stanley will still not open the option of trading cryptocurrency directly, but only through such crypto-linked financial products.
The last major financial institution that was recently linked to setting up new cryptocurrency trading options is Goldman Sachs; more accurately, the banking giant refuted the rumors that it is suspending its previously planned cryptocurrency aspirations. Martin Chavez, Goldman Sachs Chief Financial Officer, rebutted on September 6 a prior report of a postponement of the highly-anticipated cryptocurrency trading desk. “I never thought I would hear myself use this term,” Chavez said at the TechCrunch Disrupt Conference, “but I really have to describe that news as fake news.” Chavez also notified that they are working on a new Bitcoin-based derivative, entitled “non-deliverable forward.”
If so, we have three of the largest financial institutions on the planet making big strides toward crypto. Who says that we all can’t just get along?