Investment bank Morgan Stanley is interested to buy South Korea’s largest cryptocurrency exchange Bithumb.
According to Asia Business Daily, Morgan Stanley started negotiations with Vident, the exchange largest shareholder, to buy shares in Bithumb. 10.3% of Bithumb Korea; 34.24% of Bithumb Holdings belongs to Vident.
On Wednesday, Morgan Stanley revealed that they are planning to establish three cryptocurrency-focused funds. Morgan Stanley could be the first significant American bank to allow its clients to invest in Bitcoin.
Local news Naver reported that talks between Morgan Stanley and Vident have begun. While information regarding the bargain has not yet been shared with the public, it was stated that the investment amount could exceed 200 million dollars. Bithumb can be valued for $2 billion.
Bithumb, South Korea’s largest cryptocurrency exchange, has earned $1.7 million since the beginning of the year. The daily trading volume of the exchange has exceeded $5 billion in the past week.
Morgan Stanley could be the first global investment bank to invest in a significant crypto exchange if a deal is reached. Vident shares gained more than 5% after this news.
Commenting on the Morgan Stanley, Analyst Joseph Young said,
Morgan Stanley is reportedly bidding for Bithumb, South Korea’s top crypto and bitcoin exchange, for $2 billion valuation. Slowly, then surely. The explosiveness of institutional interest in this space right now is unprecedented.
Possible investment in Bithumb has also received support from Binance CEO Changpeng Zhao.
– CZ Binance (@cz_binance) March 19, 2021