The American multinational investment bank and financial services company Morgan Stanley are rumored to be in competition for South Korea's leading cryptocurrency exchange Bithumb. According to the medium local communication of the country, Morgan Stanley is already in the process of negotiation, which will allow the bank to acquire stakes in Bithumb.
According to the source, a senior Bithumb official revealed that Morgan Stanley had previously participated in an acquisition process prior to this, and now intends to increase market shares by going through the same external source that it previously went through: Mergers &. Acquisitions (M&A) to help consolidate company assets and stimulate growth.
"Morgan Stanley participated in the Bithumb acquisition deal through the great hand of M&A (M&A), where Morgan Stanley participated in the acquisition of Bithumb in the past." Revealed the source.
Another insider explained that Morgan Stanley's decision to use Bithumb's main shareholder, Bident, was a well-planned strategy to help Bident negotiate ownership of the exchange.
Part of his statement reads like this:
"The reason Morgan Stanley used Bident is because it understood that Bident has the right to negotiate a pre-emptive sale to acquire Bithumb Holdings."
Morgan Stanley is reportedly allocating between 300 and 500 billion won ($ 265 million to $ 442 million) for this investment. This might be a risky bet for some, but when market analysts predict that the company's estimated corporate value will be worth 2 trillion won in the near future (over $ 1.7 billion), it's no surprise that Morgan Stanley is laying a lot of eggs. in a basket.
This comes shortly after the firm exclusively told CNBC that its wealthy clients will get full access to Bitcoin funds. The bank is the first in the United States to offer this investment plan. The firm revealed to its financial advisers through a private memorandum that it plans to launch three funds that will allow its investors to gain ownership of Bitcoin, according to insiders familiar with the new development.
Morgan Stanley is estimated to manage around $ 4 trillion in client assets, making it a competitive investment platform of choice for some of the wealthiest American investors.
Industry players like CZ are extremely excited about participating in the events, as expected. Analyst Joseph Young took to Twitter to express his enthusiasm, while noting that institutional interest in the crypto market is unparalleled.
"The explosiveness of institutional interest in this space at this time is unprecedented."