JPMorgan to Launch Bitcoin & Crypto Trading for Clients, Eyes Stablecoin Expansion
NEW YORK – JPMorgan Chase is moving forward with plans to offer Bitcoin and other cryptocurrency trading services to its clients, according to recent statements from the bank’s leadership.While full custody services aren’t immediately planned, the firm is actively exploring the necessary custodial solutions and expanding its involvement in the digital asset space.
In a CNBC interview,JPMorgan executives outlined an “and” strategy,aiming to integrate blockchain technology with existing financial infrastructure. Jamie Dimon previously signaled the bank’s intention to participate in crypto trading during investor day, but emphasized custody was not currently a priority.
“Jamie [Dimon] was pretty clear during investor day that we were going to be involved in the trading of that, but custody is not on the table at the moment,” said a jpmorgan representative.
The bank is currently experimenting with deposit tokens and stablecoins,designed to function as cash-like digital assets on distributed ledgers. JPMorgan’s deposit token, JPMD, is currently in a prototype phase within the U.S. and is being considered as a platform for potential client services and cash management solutions.
“Naturally, we need custodians. So we’re exploring what the right custodians for us for the business footprint of,” the representative added.
While JPMorgan’s markets division won’t directly issue stablecoins, the bank’s payments business is expected to lead any future issuance efforts. Currently, JPMorgan is enabling its trading clients to utilize stablecoins for transactions and to explore new financial workflows, bridging traditional markets with blockchain infrastructure.
The bank also acknowledges the increasing importance of public blockchains in capital markets, anticipating a growing shift of market activity towards these networks, despite maintaining proprietary internal platforms.
These developments come alongside JPMorgan’s broader commitment to bolstering U.S. industries.The bank recently announced a $1.5 trillion, decade-long “Security and Resiliency Initiative” to invest in key sectors like energy, manufacturing, and defense, including up to $10 billion in equity and venture capital for domestic innovation and strategic manufacturing.
Bitcoin Seen as Undervalued
JPMorgan research released earlier this month suggests Bitcoin might potentially be undervalued relative to gold. Analysts estimate the cryptocurrency could reach $165,000 – a 450% increase from current levels – if the “debasement trade” continues. the analysis points to the decreasing bitcoin-to-gold volatility ratio, falling below 2.0, as a key indicator of Bitcoin’s growing attractiveness.
jpmorgan has also explored lending against clients’ Bitcoin holdings, potentially marking a first for the bank in accepting digital assets – excluding ETFs - as loan collateral. Earlier this year, the bank began allowing clients to use Bitcoin ETFs as collateral and incorporating crypto holdings into net worth evaluations alongside traditional assets.
