JPMorgan Provides Banking Services to Coinbase and Gemini

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May 14, 2020 – Despite previous statements from its head that Bitcoin is comparable to “tulip buds”, JPMorgan now provides banking services to 2 heavily regulated exchanges – Coinbase and Gemini.

The Wall Street Journal cited unnamed sources that this is the first time JPMorgan Chase has accepted clients in the cryptocurrency industry. Writer Paul Vigna said this is a positive development for Bitcoin and a sign that Wall Street is “becoming more comfortable with the business of cryptocurrencies”.

The accounts were approved in April 2020 and transactions are now being processed. JPMorgan will provide cash-management services and will handle dollar transactions for US clients. The bank will not process crypto transactions on the exchanges’ behalf.

Coinbase is the largest exchange in the US. Both Coinbase and Gemini are regulated by multiple third-parties, which could be a reason why they got approved.

Others may view this as non-news, citing that JPMorgan will only handle the dollar transactions and the bigger “win” is if the bank will handle the crypto transactions as well. However, Vigna noted that the fact that JPMorgan will extend services to crypto businesses is a win in itself because, in the past, US banks block crypto businesses from opening up bank accounts as they are concerned that touching Bitcoin will mean exposing the banks to laundering operations.

Sources: Wall Street Journal, Cointelegraph

This article is published on BitPinas:Ā JPMorgan Provides Banking Services to Coinbase and Gemini

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Michael Mislos

A business ad graduate from the Pamantasan ng Lungsod ng Maynila, Mike is the website manager of Bitpinas.com. He is responsible for almost every content you see on the site, from topic/news selection to editing of articles. Mike believes correct information about blockchain and cryptocurrency can empower people to make accurate decisions about the industry, which, in turn, should deter bad actors from taking advantage of crypto & blockchain. [Telegram @mikemislos]

Michael Mislos
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