- JPMorgan Chase will allow customers to purchase cryptocurrencies but will not directly hold the assets.
- The bank’s CEO, Jamie Dimon, announced the decision, noting it is in response to client demand.
- This move reflects a shift from Dimon’s past criticism of Bitcoin and digital currencies.
- Other financial institutions, including Goldman Sachs and Morgan Stanley, are also expanding crypto services.
- JPMorgan will rely on a third-party provider for holding digital assets, with possible partners including Coinbase and BNY.
JPMorgan Chase will soon allow its customers to purchase cryptocurrencies, according to CEO Jamie Dimon. The bank will not directly hold these digital assets; instead, it will list them on customer statements. The decision reflects increased interest in cryptocurrencies among clients.
Dimon shared the update at the company’s annual investor day. He said, “We are going to allow you to buy it. We’re not going to custody it. We’re going to put it in statements for clients,” as reported by CNBC. Previously, Dimon described Bitcoin as a “hyped up fraud” but now emphasizes meeting client demands.
Other major financial institutions are also moving towards cryptocurrency offerings. Goldman Sachs has started similar services, while Morgan Stanley plans to provide its clients with access to digital assets. Robinhood continues to make notable profits from crypto trading, and Schwab has supported EDX Markets, a platform for institutional crypto trading. E-TRADE, a subsidiary of Morgan Stanley, is exploring offering cryptocurrency as well.
While JPMorgan is opening crypto purchases to its customers, it will not offer custody—services where banks keep digital assets secure for clients. Until recently, regulations limited banks’ ability to provide these custody services. Now that restrictions (such as the SEC’s SAB 121 guidance) are changing, banks like BNY and Standard Chartered see this as an opportunity, while JPMorgan prefers to work with a partner.
The bank will need to select a custody provider. Options include established crypto companies like Coinbase, Anchorage Digital, Paxos, BitGo, and Ripple Custody. Institutional startups such as Zodia Custody and Komainu are also possibilities, though their operations in the U.S. are more limited. JPMorgan may also consider well-known banks like BNY, though BNY is a competitor.
Crypto companies offer specialized knowledge in digital assets, while traditional banks bring higher security budgets. However, working with a direct competitor such as BNY could complicate the partnership.
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