Investing giant Pimco is considering trading cryptocurrencies


Pimco, a $2 trillion investment firm, could potentially begin trading spot cryptocurrencies, the firm's chief investment officer Daniel Ivascyn confirmed to CNBC

The firm, which has engaged with the market via crypto-linked securities, is now looking at "trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the fundamental side," Ivascyn said. 

"So this will be a gradual process where we spent a lot of time on the internal diligence side speaking to investors. And we'll take baby steps in an area that's rapidly growing."

Already, the firm is trading securities that are tied to the crypto market, taking advantage of price discrepancies that exist between different products. It has not taken a directional view on the space through these securities, to be sure. 

Ivascyn also said that the firm is paying attention to decentralized finance, describing it as "disruptive."

As such, Pimco is "thinking about scenarios where this could take us to ensure that we are competitively prepared to deal with what’s a rapidly changing environment that offers a pretty significant value proposition, particularly for younger generations, or the new generation of the investment community."

Ivascyn's comments came after bitcoin soared past all-time highs above $66,000 and the launch of the first bitcoin futures-based ETF. 

With more than $2 trillion under management, Pimco is one of the largest players in the investment world—actively investing across the fixed-income, alternatives, and equity markets. 

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With more than $100 billion in market cap across all chains, it is likely that the DeFi market cap will grow to $200 billion by 2025. However, many users still face various technical barriers when using decentralised platforms to do on-chain farming, staking and trading, while off-chain solutions face liquidity issues, fiat restrictions and the lack of a central multichain to support crypto assets and institutional-grade custodians. 
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