- A report surfaced that investment banking giant JPMorgan plans to launch a spot and derivatives crypto trading platform.
- The bank continues making a complete pivot from its CEO’s harsh rejection of Bitcoin and other cryptocurrencies over the past couple of years.
JPMorgan, despite its harsh criticisms of the crypto industry over the past couple of years, is now aggressively advancing into the sector it has fought so hard to discredit. A new report emerged claiming that the investment banking leader is considering offering an institutional-grade digital asset trading platform.
JPMorgan’s Planned Crypto Trading Platform
According to Bloomberg, citing a person familiar with the plans as a source, JPMorgan has begun exploring several crypto-related offerings. Its market division is currently evaluating several products and services to include in its planned trading platform, which would be exclusive to institutional clients. The informant reportedly requested anonymity because discussions about the subject are strictly confidential.
Information about the matter is scarce. However, the publication stated that the bank is studying the launch of spot and derivatives trading on its future crypto platform.
The Investment Bank’s Latest Crypto Advance
Despite the lack of official confirmation, the move makes strategic sense as JPMorgan has been heavily leveraging blockchain technology for its products and services. Recently, the $4 trillion financial institution has allowed its clients to purchase Bitcoin (BTC), launched the JPM Coin deposit token, and rolled out the MONY tokenized money fund.
Before its reported plan to launch a crypto exchange, insiders also revealed that JPMorgan was mulling on accepting crypto-backed loans by next year. It’s supposedly eyeing to support Bitcoin and Ethereum (ETH) under the new venture.
To make it clear, the bank’s CEO, Jamie Dimon, is still a crypto hater to the core. He views Bitcoin and altcoins as highly volatile and susceptible to illicit use, particularly for money laundering and terrorism financing. Hence, his company’s change of stance, or rather tolerance, is merely an answer to the growing demand for digital assets and blockchain-related services from its clientele.
In other words, JPMorgan is only riding the trend for strategic and business reasons, as crypto has become too big to ignore for the banking giant. Institutional demand for crypto products and services has increased notably since US regulations shifted to a more favorable climate for digital assets. At the same time, its competitors have started taking advantage of the benefits of blockchain tech to enhance their operations and offerings.
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