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Morgan Stanley now owns 792,627 shares in the company best known for using its treasury funds to load up on bitcoin.
It supersedes the $200,000 option on Deribit as the maximum one can wager.
Bitcoin is currently more valuable than all but six of the world's publicly traded companies.
A deal could be announced as soon as next week, the report said.
Bitcoin's price is now more than twice the all-time high of $19,783 reached during 2017's bull market run.
Separately, U.S. officials are reportedly considering banning U.S. citizens from investing in Alibaba Group, an affiliate of Alipay's parent.
The price of bitcoin soared to a new-all time high of $37,014.58, before settling back to $36,780.78, up 6.40% over the last 24 hours.
Voyager said it will suspend trading in XRP, effective Monday, Jan. 18, at 12:00 p.m. New York time.
The homepage of the popular cryptocurrency exchange is currently inaccessible.