JPMorgan crypto banking support comes as no surprise for a banking institution that has its own token. According to a Wall Street source conversant with the arrangement, the bank becomes the first in the U.S. to extend a helping hand in the crypto space to support Gemini and Coinbase crypto exchange users.
The report dated May 12 indicates that Gemini and Coinbase got the JPMorgan bank in April. This is a big milestone for both the banking and crypto industries in easing the existing friction between the two market players. However, the bank is not processing cryptocurrency transactions. It is offering cash management-as-a-service, in particular, handling the U.S. dollar for the exchange client based in the U.S.
JPMorgan crypto banking support targeting U.S. regulated exchanges
The JPMorgan crypto banking support appeared to target high profile crypto exchanges that are fully regulated. However, the bank will only handle wire transfers, USD deposits, and withdrawals through their Automated Clearing House Network. Both the exchanges are fully regulated making them the right fit for JPMorgan Chase bank cash management service.
For Gemini and Coinbase to access the service, they had to go through a stringent vetting process. The bank has been hesitant to partner with platforms associated with cryptocurrencies and related services. This could explain the reason why the Winklevoss owned exchange has been fighting for crypto exchange regulation.
Huge surprise as JPMorgan crypto banking support goes live
The JPMorgan crypto banking support services for Geminin and Coinbase comes as a big surprise for many industry observers. Jamie Dimon has been on records as the biggest critic of the crypto sphere. He is on record saying that Bitcoin is not the future and it will not end well
However, the bank positivity on the opportunities behind blockchain is not a secret. This was made clear in February 2019 when the bank announced the launch of its native token, the JPM coin. The bank has shown interest in ConsenSys, an Ethereum based platform through a partnership with Quorun which connects various banks through its ecosystem.