JPMorgan weighs offering Bitcoin, crypto trading to institutional clients

Key Takeaways

JPMorgan is exploring the possibility of offering Bitcoin and crypto trading services to institutional clients.
Regulatory shifts and increasing client interest are encouraging large banks to expand into digital asset markets.

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JPMorgan is weighing whether to offer crypto trading to its institutional clients, as banking peers deepen their involvement in digital assets, Bloomberg reported Monday. This includes a possible addition of spot and derivatives trading desks to its market division.

Scott Lucas, who leads digital assets for JPMorgan’s markets division, said in an October interview that the bank intended to pursue crypto trading but had no plans to offer custody services.

JPMorgan is already working to let clients use Bitcoin and Ethereum as loan collateral, marking a huge shift in the bank’s approach to digital assets under CEO Jamie Dimon, who has long been skeptical of Bitcoin.

Discussions about crypto trading are still in the early stages and are being driven by rising client interest following recent shifts in the US regulatory environment. Any development will depend on demand, risk assessments, and what is feasible under existing regulations.

The potential expansion would mark another step in banks warming to crypto following the return of Donald Trump to the White House and the appointment of more crypto-friendly regulators.