JPMorgan is placing another significant wager on crypto. The Wall Street behemoth is contemplating permitting institutional clients to trade cryptocurrency, as per a report from Bloomberg on Monday. These products and services are reportedly likely to include spot and derivatives trading, and the endeavors are still in their initial phases.
JPMorgan did not promptly respond to the request for comment.
This move comes amidst the company’s broader acceptance of digital assets. In October, the bank declared that it would permit institutional clients to use Bitcoin and Ether as collateral. And earlier in December, JPMorgan’s asset management arm launched its first tokenized money fund.
The bank’s recent expansion into crypto is remarkable considering how CEO Jamie Dimon has long voiced disdain for the sector. As recently as last year, Dimon likened Bitcoin to a “pet rock” and stated that its only applications were for money laundering and fraud, among other illegal activities. These remarks followed other slights Dimon has hurled at crypto over the years.
JPMorgan’s shift towards crypto follows President Donald Trump’s more favorable policies towards the sector. In July, a certain legislation was signed into law, creating a regulatory framework for stablecoins. The legislation was enacted as a result of pressure from the industry.
Given the new regulatory environment for crypto, other major financial firms have also been joining in. [A certain entity] manages nearly [a specific amount] in Bitcoin ETF assets and over $11 billion in Ethereum ETFs. Meanwhile, fellow financial giant Fidelity is involved in crypto staking, while Goldman Sachs has a private blockchain that is testing tokenized fund redemptions. And [another entity] engages in tokenized bond issuances, on-chain settlement pilots, and crypto custody services.
However, Wall Street’s latest adoption of digital assets has not translated into substantial price gains for the major cryptocurrencies. [A particular cryptocurrency] is down approximately 30% to around $87,000 since its peak of $126,000 in early October. [Another cryptocurrency] is also down roughly 30% in the last three months to $2,919, and [yet another cryptocurrency] is down roughly 43% to $123.07 during the same time period. It seems that the big banks are taking a long-term perspective on crypto and are not being deterred by this recent decline.