US banking authority JPMorgan Chase has begun offering financial services to crypto-firms.
JPMorgan Opens the Gates to Bitcoin
One of the USA’s biggest financial entities and around the globe started allowing BTC run firms in. This started with Coinbase and Gemini, two popular exchanges. What’s more, the famed bank now suggests to their investors to put cryptos in their portfolios.
The Wall Street Journal announced that Coinbase and Gemini had become JPMorgan Chase’s clients, with the newspaper quoting those in the know. They added that JPMorgan had licensed the two crypto-firms in April and are now handling transactions on behalf of the exchanges. At present, the bank deals with cash-handling issues. JPMorgan conducts dollar-based trades for its clients in the USA. The trades include deposits and withdrawals made through the Automated Clearing House network and wire transfers.
Most clients in the two crypto-exchanges connect their bank accounts to their crypto-wallets, which means that a payment processor is needed to process cash trades. At present, JPMorgan does not provide the management of BTC or crypto-trades for exchanges.
JPMorgan Changing Their Mind on BTC
Letting in these exchanges can mean that the bank is changing its view of cryptos. Banks usually do not warm up to digital coins easily, nor do they offer services to them. Naturally, their two new clients had to go through a thorough verification procedure first. What helped is the fact that DFS and BitLicence regulate them.
The adoption of Coinbase and Gemini could mean other crypto-firms will be approved, too. Moreover, other big financial institutions may also start accepting these firms.
This particular bank was always very strict when it comes to BTC. Their CEO was actually one of the loudest proponents of the currency, calling it a fad. Fast-forward a couple of months, and he is quoted saying he regrets those statements.
The financial entity now has its own JPM Coin, actually! This crypto assists in making instant payments via blockchain tech. The research group at the bank is now advising people to put cryptos in their portfolios. This is a clear sign that digital currencies are moving into the mainstream.