Wall Street Cracks: JPMorgan Moves To Offer Crypto Trading

Wall Street hasn’t always been friendly toward crypto. For years, big lenders treated it like a passing fad or a risky playground for retail traders. But that attitude is shifting fast. JPMorgan’s plan to let clients trade digital assets marks a turning point — a signal that the most traditional corners of finance are finally warming up to crypto. What was once dismissed as speculation is now being folded into mainstream banking strategy.

JPMorgan Chase is building services that would let its clients trade cryptocurrencies directly through the bank, senior executives told journalists this week.

According to comments made on CNBC, the bank’s global head of markets and digital assets, Scott Lucas, said trading is being developed while custody — holding crypto directly for clients — is “not on the horizon near-term.”

JPMorgan’s Public Push Into Tokens And Trading

The bank has moved quietly but clearly. It ran a pilot of a deposit token called JPMD on Coinbase’s Base blockchain in June, a step that aims to make bank deposits usable on public chains for institutional clients.

At the same time, JPMorgan has widened cooperation with Coinbase so Chase customers can link bank accounts to Coinbase wallets, a link between big banking rails and consumer crypto platforms. Those moves were mentioned by bank executives as part of an “and” approach — keeping traditional services while adding digital options.

Risk Appetite Will Shape The Rollout

Executives say risk rules and regulatory checks will shape how far the bank goes. Lucas said the firm is looking at what “the right custodians” would look like rather than taking custody itself for now.

That suggests JPMorgan would rely on third parties if and when it offers custody services, keeping its balance sheet and compliance teams at arm’s length from the security and legal complexities of holding private keys.

JPMorgan Also Considering Loans Backed By Crypto

Beyond trading, there are signs JPMorgan is exploring other services tied to crypto. Reports say the bank is weighing offering loans backed by cryptocurrency holdings — a move that could arrive as early as next year if approved internally and cleared by regulators.

That would mark a notable shift for a bank whose CEO long warned about crypto risks but has recently allowed client access to Bitcoin trading in statements to investors.

Timelines And Custody Partners

For customers and market watchers, the key questions remain: which clients will get access first, which coins will be tradable, and who will custody assets if custody is outsourced.

The bank’s statements point to a careful, staged approach — trading first, custody later — and regulators in the US will likely follow closely.

Expect more detail from JPMorgan as pilot programs like JPMD and partnerships with exchanges produce results and as the bank outlines compliance safeguards.

Featured image from Unsplash, chart from TradingView