According to a New York Times report, Wall Street will use bitcoin to finance bonuses for employees. With the cryptocurrency, banks and brokerages will digitally fulfill year-end payouts of hard cash and deferred stock awards to traders and bankers, Wall Street insiders claim.
Bob Graham, a digital currency expert at accounting and advisory firm Friedman, believes the bonus could be used to recruit better talent in organizations.
Bitcoin, the leading cryptocurrency, has seen exponential growth reaching close to $20,000 this week. The rising value has gained the attention of many including hedge funds execs, high-frequency traders, and other asset managers.
Therefore, the idea of cryptocurrency bonuses isn’t far-fetched as most think.
Actually, partners in some venture funds are already accepting “virtual tokens” tied to initial coin offerings as part of their packages according to securities attorney Aaron Kaplan, at Gusrae Kaplan Nusbaum.
Kaplan says asset managers are contemplating joining the cryptocurrency investment mania and entering the crypto marketplace as the company has gotten a lot of inquiries seeking knowledge of cryptocurrencies.
The prospect of highly coveted bonuses being padded with bitcoin increased significantly with the Chicago Board Options Exchange (CBOE) and the CME Group launching bitcoin futures contracts.
Next Sunday night the CBOE contract under ticker symbol XBT begins and will be equal to one bitcoin. Also next Sunday, five bitcoins will trade at the CME under ticker symbol BTC beginning.
New York-area commodities trader Dmitry Pichkar believes the bonus possibility and prices ratcheted up because the contracts was an endorsement of bitcoin as a type of commodity that people, including the institutions, will be able to participate in.