JPMorgan Shifts Stance on Crypto, Explores Trading and Custodial Services
JPMorgan is transitioning from skepticism to active engagement with cryptocurrency, developing a trading service, a deposit token, and crypto-backed loans. The bank will leverage third-party custodians to manage digital asset safekeeping, enabling trading services while mitigating direct risk and regulatory complexities. Scott Lucas, a JPMorgan executive, emphasized this approach during an appearance on Squawk Box, framing it as a strategic balance between traditional finance and blockchain innovation.
The bank's 'and approach' signifies a broader shift in its strategy, marking a stark reversal from CEO Jamie Dimon's earlier criticisms of crypto. JPMorgan is also exploring the use of its proprietary deposit token, $JPMD, further underscoring its commitment to integrating blockchain technology into its operations.
