Major financial multinational Morgan Stanley is joining the bandwagon by explicitly seeking recruits with cryptocurrency knowhow. The company’s latest three job postings for equity research positions stated: “knowledge of cryptocurrency is a plus.”
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Equity analysts are responsible for performing analysis of a particular sector and then using that data to advise clients to make beneficial investment choices. The three job postings for equity research cover different areas of business that includes MLPs Analyst, Communication Equipment Analyst, and Payments, Associate.
Morgan Stanley’s on and off Love Affair With Cryptocurrency
As reported by Business Insider reported that executive director James Faucette, in a new report about cryptocurrencies, highlighted how digital currencies could influence the existing financial industry. His report noted “Bitcoin has emerged as a growing focal point within the payments industry, both for its disruptive potential as well as the potential costs savings that blockchain may help unlock.”
However, in December last year, Faucette and his team released another research paper to clients indicating that real value of Bitcoin is $0, when at the time the value of bitcoin was about $14,000 USD. He also claimed cryptocurrencies are not similar to fiat currency or gold — hence, making it difficult to value them.
At the start of 2018, the cryptocurrency ecosystem was undergoing a bloodbath with most digital assets experiencing significant price drops. During the time, Morgan Stanley’s chief financial officer Jonathan Pruzan revealed the Wall Street giant had been clearing Bitcoin futures contracts for institutional clientele.
Purzan told Bloomberg “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.”
Wall Street Giants Bow to Crypto Demand
The demand for cryptocurrency has led many traditional financial institutions to offer related services — even if they can’t hold the assets directly. Unlike traditional financial bodies in the United States that are tentatively adopting cryptos, several banks in Europe have banned employees from trading digital assets at all.
In January, Northern Europe banking giant Nordea Bank banned all its employees from owning bitcoin or other cryptocurrencies. Not only did it ban holding digital currencies, but it also restricted its 31,000 employees from even learning about the crypto space.
Similarly, Swiss global financial services firm UBS Group AG also demanded that its employees seek the company’s approval before trading cryptocurrencies.
However it seems Morgan Stanley will become the next financial institution, the first being JP Morgan Chase, that will backpedal from critiquing cryptocurrencies.
Will more financial institutions hire crypto experts to serve their clients? Let us know your views in the comments section.
Images via Wikimedia Commons, CNBC