JPMorgan customers will be able to acquire and purchase Bitcoin and crypto via the bank itself, despite the firm not holding any Bitcoin.
In an announcement from CEO Jamie Dimon, JPMorgan will introduce the ability for clients to buy crypto by not providing custody for it, but instead have it in statements.
Jamie Dimon has previously blasted Bitcoin as a “pet rock” and fraudulent. A recent change of tone points towards increased consumer demand.
Bitcoin holdings come to JPMorgan customers
JPMorgan CEO Jamie Dimon announced that customers will be able to purchase Bitcoin via the bank.
The bank will not provide custody services but will only apply the Bitcoin to statements related to customer holdings.
JPMorgan CEO Jamie Dimon
Jamie Dimon, speaking on the new Bitcoin addition, said: “We are going to allow you to buy it,” Dimon said at the bank’s annual investor day on Monday. “We’re not going to custody it. We’re going to put it in statements for clients.”
In the past, Dimon has blasted Bitcoin and crypto but has since changed his tone, describing how consumers are demanding crypto and that he can accept such choices: “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”
Questions about who will be providing custody remain up in the air at the moment. With SAB 121 revoked, banks are now able to provide enhanced crypto holding services, but JPMorgan has decided not to hold up a bargain.
Standard Chartered Bank, on the other hand, has been providing custody services for investors and has taken it upon itself to delve deeper into the cryptocurrency industry.
JPMorgan may need to approach other services for custody. Coinbase Custody is commonly used by investment firms offering crypto ETFs, with many large firms such as Greyscale utilizing Coinbase Custody.
JPMorgan crypto shift signals increased institutional attention
JPMorgan’s shift in crypto adoption signifies how strong retail demand is becoming. Institutions are awaiting the GENIUS Act to be approved, possibly by this week, before continuing to adopt cryptos like stablecoins.
The GENIUS Act will deliver US firms a regulated framework for adopting digital assets on a large scale, providing clear regulations that have been sought after for years.