JPMorgan Explores Crypto Trading for Institutional Clients as U.S. Banks Embrace Crypto

The world’s largest U.S. bank, JPMorgan, is reportedly exploring crypto trading for institutional clients even as U.S. banks embrace crypto and look to provide exposure for their clients. According to the reports, the move is still in its early stages as the firm considers what products to offer.

JPMorgan Looks To Offer Crypto Trading For Institutional Clients

According to a Bloomberg report, the bank is considering offering crypto trading to its institutional clients. This development is reportedly assessing what products and services its markets division could offer to expand its footprint in cryptocurrencies.

The products that JPMorgan could offer would include spot and derivatives trading. Meanwhile, the report noted that the efforts are still in their early stages and are in response to rising interest from clients as the crypto industry continues to gain regulatory clarity.

The closest the bank has come to offering crypto exposure is its partnership with Coinbase earlier this year, which enables customers to link their bank accounts to their crypto wallets.

Concrete plans to offer crypto trading are said to depend on whether JPMorgan sees sufficient demand for any specific product. The bank will also assess the risks and opportunities, and what is feasible from a regulatory standpoint.

Notably, the bank is also facing increased competition as other major U.S. banks warm up to crypto. CoinGape recently reported that the PNC Bank had partnered with Coinbase to roll out Bitcoin trading for its clients.

Meanwhile, it is worth noting that JPMorgan has continued to embrace crypto despite its CEO, Jamie Dimon, expressing skepticism about this asset class. The bank recently tokenized a money market fund on Ethereum as part of its tokenization push.

Furthermore, JPMorgan helped Galaxy Digital tokenize a short-term bond on the Solana network. The bank has also filed for Bitcoin-backed structured notes that track BlackRock’s BTC ETF’s performance. It also allows its clients to use their BTC and ETH holdings as collateral to access loans.