JPMorgan Chase began to provide services for crypto exchanges. The first customers were Coinbase and Gemini

According to reports, the banking giant JPMorgan Chase is providing services for cryptocurrency exchanges.

According to a report by the Wall Street Journal on Tuesday, JP Morgan ’s first crypto clients were Coinbase and Gemini, two major US exchanges.

This is the first time JP Morgan has been reported to take away customers from the cryptocurrency space. According to the report, the accounts of Coinbase and Gemini were approved last month and are now processing transactions.

According to reports, JPMorgan Chase is providing cash management services for crypto exchanges and processing dollar-based transactions for its US customers. It will handle wire transfers, deposits and withdrawals through the Automated Clearing House (ACH) network. 

This is a “quite significant news”

It has long been known that banks have been reluctant to provide services to cryptocurrency companies, including exchanges. Last August, Barclays Bank stopped providing banking services to Coinbase.

JPMorgan’s move shows that traditional financial companies are increasingly satisfied with the cryptocurrency market.

A banker told The Block:

“In my opinion, this is very important news. JPMorgan Chase can get very little from processing wire transfers and ACH payments, and I expect these related banking services will bring other related benefits to JPMorgan Chase. The further cooperation of the companies may win any future IPO possibility or launch JPM Coin on any platform. “

The banker added that the news will be noticed throughout Wall Street, which may lead other banks to open the door for cryptocurrency companies.

“In the same way, the news that” Legendary hedge fund manager Paul Tudor Jones is investing in bitcoin “gives macro hedge funds reason to study bitcoin, the largest bank that provides cryptocurrency exchange services , Which has great credibility in this field. “

Is Bitcoin “a fraud”?

JPMorgan’s move is particularly interesting because its chief executive Jamie Dimon has long been a critic of Bitcoin. He once called Bitcoin, the world’s largest cryptocurrency, “fraud”.

However, JP Morgan has experimented with Bitcoin’s basic blockchain technology. The bank operates a blockchain-based payment network called the Inter-Bank Information Network (IIN), which allows member banks to exchange information related to international payments. Members of the network include some well-known banks: Deutsche Bank, Royal Bank of Canada, and Australia and New Zealand (ANZ) banking groups.

JPMorgan Chase also operates a Crypto token similar to a stablecoin, called “JPM Coin”, which enables instant payment transfer between institutional accounts.

It is said that earlier this year, JP Morgan was discussing the merger of its blockchain division Quorum with the Ethereum development studio ConsenSys.

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