JPMorgan Plans Crypto Trading Push but Keeps Custody on Hold

Fintech

JPMorgan is quietly preparing to take a larger role in the digital asset space, outlining plans to roll out cryptocurrency trading services while steering clear of direct custody for now.

The move reflects a cautious but growing appetite for blockchain integration at one of Wall Street’s most influential banks.

Scott Lucas, who oversees the bank’s global markets and digital assets division, told CNBC that JPMorgan intends to engage in trading-related activity but is not yet ready to handle custody internally. He noted that internal risk assessments and regulatory clarity will determine how far the firm goes down that path.

Lucas described the bank’s current roadmap as an “and” strategy – expanding traditional services while experimenting with blockchain infrastructure. That philosophy underpins JPMorgan’s broader digital transformation, which has included partnerships with Coinbase and the development of its own deposit token, JPMD, currently being tested on Base.

The shift comes as CEO Jamie Dimon softens his stance on crypto after years of criticism. Once dismissive of digital assets, Dimon recently acknowledged the potential of stablecoins and blockchain systems for modern finance. Lucas echoed that sentiment, saying JPMorgan sees strong demand from institutional clients for tokenized cash and stable-value assets.

The bank is also exploring multi-chain possibilities rather than relying on a single blockchain. Lucas said JPMorgan expects continued competition among networks, viewing diversification as an advantage rather than a challenge.

While custody remains “off the table,” the message is clear: JPMorgan wants to expand its digital footprint through trading and blockchain applications, betting that institutional adoption of crypto-based systems will accelerate in the coming quarters.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Author

Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.

Market participants are eagerly anticipating at least a 25 basis point (BPS) interest rate cut from the Federal Reserve on Wednesday. The Federal Reserve, the central bank of the United States, is expected to begin slashing interest rates on Wednesday, with analysts expecting a 25 basis point (BPS) cut and a boost to risk asset prices in the long term.Crypto prices are strongly correlated with liquidity cycles, Coin Bureau founder and market analyst Nic Puckrin said. However, while lower interest rates tend to raise asset prices long-term, Puckrin warned of a short-term price correction. “The main risk is that the move is already priced in, Puckrin said, adding, “hope is high and there’s a big chance of a ‘sell the news’ pullback. When that happens, speculative corners, memecoins in particular, are most vulnerable.”Read more