updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Morgan Stanley is reportedly evaluating plans to introduce cryptocurrency trading through its online brokerage subsidiary, E-Trade, according to sources close to the firm on January 2, 2025. This potential expansion could position the brokerage as one of the largest traditional financial institutions to enter the digital asset trading market.
As of now, Morgan Stanley’s E-Trade offers investment in conventional financial securities, including stocks, bonds, and ETFs. However, introducing cryptocurrency trading services is a clear indication that Morgan Stanley is keen on expanding its product line and meeting market demands.
The potential move is being examined as the United States anticipates a friendlier regulatory environment under the Trump administration. The industry has received an encouragement from the President-elect of the United States of America, Donald Trump’s campaign where he vowed to appoint strict pro-crypto officials and even start a bitcoin reserve in the United States.
The acquisition of E-Trade by Morgan Stanley in 2020 at a deal worth $13 billion was to enhance the wealth management business through the use of E-Trade’s many customers. If cryptocurrency trading is integrated, it will create a possibility for millions of customers to engage with the digital asset market directly.
Morgan Stanley’s E-trade action reflects the ongoing trend of institutions developing an interest in cryptocurrencies. Last year, Morgan Stanley started offering its high-net-worth clients access to spot Bitcoin ETFs, which underpin the increasing interest of traditional investors in digital assets.
Other legacy institutions such as Goldman Sachs have also indicated their interest in the crypto market but only if there is a clear policy direction. At the same time, Grayscale and Bitwise have submitted applications for the approval of investing in ETFs that are tied to cryptocurrencies other than Bitcoin and Ethereum.
If E-Trade were to join the direct crypto trading segment, it would rival Coinbase and other companies that currently hold a significant share of the retail trading market.
The U.S. is not alone in its embrace of crypto. European financial institutions are also moving into the sector following the implementation of the Markets in Crypto-Assets (MiCA) regulation, which took full effect on December 30, 2024.
Like Morgan Stanley, Spanish banking giant BBVA, through its Turkey-based subsidiary Garanti BBVA Kripto, is preparing to roll out crypto trading services to the public after completing a pilot program. Likewise, Deutsche Bank has also been working on creating blockchain solutions for custody and tokenization with the help of Swiss startup Taurus.
These developments point to a general trend of increased adoption of cryptocurrencies by banks as the regulatory landscape becomes more favorable. “We are in discussions with over 50 institutions that are prepared to launch crypto trading in 2025,” said Abel Peña, the Chief Sales Officer at Bit2Me, a BBVA-associated crypto exchange.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The world’s largest digital assets manager Grayscale continues to push the envelope further for getting its spot Bitcoin ETF back in the market. On Tuesday, November 21, Grayscale engaged in discussions with the SEC and revealed the execution of a Transfer Agency and Service Agreement with BNY Mellon for its spot Bitcoin ETF.
On November 20, a memo from the SEC revealed that Grayscale executives, including CEO Michael Sonnenshein, held discussions with the SEC’s division of trading and markets. The meeting focused on the proposed rule change by NYSE Arca, Inc. to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E.
Grayscale subsequently disclosed the execution of a Transfer Agency and Service Agreement with BNY Mellon, as per a filing shared by Bloomberg ETF analyst James Seyffart. BNY Mellon will serve as the agent for Grayscale Bitcoin Trust (GBTC), managing the issuance and redemption of shares and overseeing shareholder accounts.
Scott pointed out the Transfer Agent agreement with BNY Mellon in $GBTC‘s 8K today because he apparently has eyes everywhere. That said, this agreement is likely something that was always going to be required at some point. Says nothing about timing IMO https://t.co/8eIYNMWzzw
— James Seyffart (@JSeyff) November 21, 2023
In a November 21 Twitter post, Seyffart noted that the trading and markets division is responsible for approving or denying 19b-4s—a form used to inform the SEC of a proposed rule change by a self-regulatory organization. He clarified that the agreement with BNY Mellon is likely a requirement and doesn’t necessarily indicate an imminent conversion of GBTC.
The meeting with the SEC comes within a week of the securities regulator delaying the decision on spot Bitcoin ETF further.
James Seyffart shared his perspective on recent events, stating that despite inquiries, the odds, in conjunction with Eric Balchunas, remain unchanged and cannot exceed 90% by January 10th. However, Seyffart noted that, in their view, developments are still progressing positively.
On the other hand, crypto mom and SEC Commissioner Hester Pierce also shared her thoughts on future developments. Speaking with Bloomberg TV correspondent Sonali Basak, Pierce said that “There’s no reason for us to stand in the way of Bitcoin ETF”.
She added that the Graysscale’s victory over the SEC for converting its GBTC product to a spot Bitcoin ETF gave them a bit of a nudge to positively think in this direction. However, she remained tight-lipped over whether the SEC is considering approving all Bitcoin ETF applications at once.
Earlier @kaileyleinz & @sonalibasak asked SEC commissioner @HesterPeirce some great questions about ongoing conversations at the SEC related to spot #bitcoin ETFs. She mostly couldn’t answer them but she hinted that the @Grayscale court case likely gave the SEC a bit of a nudge pic.twitter.com/qBOvJW2SLY
— James Seyffart (@JSeyff) November 21, 2023
Grayscale stands a genuine chance to lead in the ETF sector if it can successfully transfer GBTC to NYSE Arca simultaneously with other issuers launching spot BTC ETFs. This, coupled with a focused strategy to compete on fees, could position Grayscale for dominance, according to ETF Store President Nate Geraci.
Geraci mentioned that Grayscale is poised to enter the market with $20 billion in assets under management from day one, even with the presence of BlackRock. Bloomberg expects the Bitcoin ETF market, to be a $100 billion market. Thus, Grayscale could be having a lion’s share in this.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
To counter the margin pressure, Barclays announced plans for a share buyback of up to £750 million.
Barclays, the British multinational bank, has recently announced its Q2 2023 financial results, revealing expectations of earning less interest in its domestic division amid concerns over inflation and high-interest rates. The bank reported a net income of £1.3 billion ($1.68 billion) for the quarter, almost meeting market expectations but leaving some analysts disappointed. The results were influenced by slower momentum in the company’s investment banking division, which experienced a 3% revenue drop. Consequently, Barclays’ shares saw a 5.4% decline in early trade, highlighting investors’ apprehension.
Despite the challenges faced, there were some positive highlights for the quarter. Revenues for the domestic division and consumer and cards arm increased by 14% and 18%, respectively. The bank’s CET1 ratio, a measure of its solvency, improved to 13.8% from the previous quarter’s report of 13.6%, indicating a strong financial position. Additionally, operating costs dropped 6% compared to the previous year.
The company’s chief executive C. S. Venkatakrishnan told CNBC that the expected decrease in net interest margins is primarily driven by customers using their savings to repay their mortgage loans. While this may reduce the risk of payment defaults, it puts pressure on the bank’s margins. Despite this, Venkatakrishnan reassured that the UK consumer is cautious but not under financial strain.
The bank’s finance director, Anna Cross, also highlighted the growing pressure on Barclays’ UK business. Stubborn inflation, which is currently the highest among the G7 group of nations, coupled with higher interest rates, has prompted customers to prioritize debt repayment and increase their savings. As a consequence, the bank’s net interest margin in the domestic bank is expected to reach as high as 4.25% in the UK.
“Since we put out that full year guidance the facts have changed. Base rates were expected to peak at 4.25% in the UK and we are now sitting here at 5%, inflation is persistently higher and mortgage rates are higher,” she told Reuters.
To counter the margin pressure, Barclays announced plans for a share buyback of up to £750 million, a move welcomed by analysts at Jefferies. The financial experts referred to it as the “silver lining” in an otherwise modestly disappointing quarter for revenue.
Looking ahead, industry analysts expressed concerns about the bank’s future performance, especially given the squeezed margins in the UK as competition intensifies and households face rising cost of living challenges.
Meanwhile, other European banks are grappling with similar struggles in their investment banking units. Deutsche Bank recently reported that its investment bank revenues were expected to fall this year, adding to the broader concerns in the industry.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
Before the end of 2023, SoftBank may finalize IPO efforts in the US for PayPay and Arm.
Japanese multinational investment holding company SoftBank Group Corp is currently considering a United States initial public offering (IPO) for its PayPay payments subsidiary, according to a Reuters report.
SoftBank is likely considering a New York listing because tech companies mostly achieve impressive valuations in places other than Tokyo. However, Japanese companies conducting IPOs in New York are not very common.
SoftBank has not decided on whether or not to list or set a timeline for the IPO.
In May, SoftBank had expressed a desire for PayPay to list in the US. Recently appointed CEO Junichi Miyakawa said the idea for a PayPay IPO is independence, adding that the listing could happen soon. Nonetheless, the IPO will likely be delayed until PayPay can properly illustrate a clear path toward profitability. PayPay is owned by SoftBank Group and Z Holdings, the holding company that comprises Yahoo! Japan and the Line instant messaging app.
Both SoftBank Group and Z Holdings shares climbed 2% and 6%, respectively. Z Holdings had its largest one-day rise since February, likely on news of the possible listing. While SoftBank is pursuing a foreign listing for the payments company, Astris Advisory Japan analyst Kirk Boodry believes the tech IPO space in Japan is not yet saturated:
“Z Holdings shares reacted on hopes that a US listing might invite a premium valuation but recent domestic listings for Rakuten Bank and SBI Sumishin Net Bank indicate there is room for fintech listings locally.”
In addition to PayPay, SoftBank’s semiconductor company, Arm, is also considering a US IPO in 2023. Arm confirmed it would likely pursue a US-only listing this year, abandoning a rumored UK option. Arm CEO Rene Haas described the US option as “the best way forward for the company and its stakeholders” after discussions with the British Government and the UK’s Financial Conduct Authority fell through.
Back in January, Haas had a meeting with British Prime Minister Rishi Sunak at the Prime Minister’s residence, with SoftBank founder Masayoshi Son present virtually. According to inside sources, the meeting ended positively as Sunak was enthusiastic about the chance of an Arm listing.
SoftBank may be hoping to improve its books this year with IPO efforts geared at Arm and PayPay. The investment giant’s Vision Fund had an unimpressive 2022, recording a 660 billion Japanese Yen ($5 billion) loss, plus a 730.35 loss on investments for the quarter ended December 31st. Because of the result, Son said the fund would begin “defense” mode and be very cautious about further investments.
For the fiscal year ended March 31st, SoftBank said its Vision Fund lost a record 4.3 trillion yen, about $32 billion. The loss for the year was higher than 2.55 trillion yen sustained for the same period in the previous year. The company said a lot of the losses resulted from heavy decreases in several company investments.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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