Panellists at this week’s Digital Assets Summit explored the definition of a crypto versus traditional prime brokerage – and what role they can really play in the new world of digital assets investment.
Tag: prime brokerage
The latest launches show that the market for institutional crypto trading is expanding – with some players predicting 1,000% growth over the coming year.
Firm is the latest independent broker to be involved in potential M&A.
The prime crypto brokerage loaned $50 billion to institutional borrowers including hedge funds last quarter, while crypto derivatives trading on the platform also hit record levels.
The two US banks have been relatively unscathed by the blow-up of hedge fund Archegos Capital in March, which resulted in losses of over $10 billion for Wall Street.
An extensive review of the prime brokerage business at Credit Suisse will focus on derisking and resizing its hedge fund servicing unit.
James Gorman, CEO at Morgan Stanley, told analysts the loss was 'necessary' and 'money well spent' as the bank totals losses far smaller than other prime brokers.
Collapse of Archegos Capital had little impact on the prime brokerage business at Goldman Sachs as it reached record levels in first three months of this year.
A $20 billion stock fire sale shook markets as Bill Hwang’s hedge fund Archegos defaulted on margin calls prompting losses at Credit Suisse and Nomura.