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Now JPMorgan Chase & Co. will extend banking services to crypto exchanges. As it has been revealed, Coinbase and Gemini already have their accounts.
JPMorgan Chase & Co (NYSE: JPM) has announced that it will be extending its services to the crypto industry. According to the recent news, Coinbase and Gemini will be the first customers to use the JPMorgan services. It is a move that will be stamping the crypto industry in the market as more and more institutions move into the crypto sphere.
Coinbase is one of the largest U.S. based crypto exchanges with more than 30 million accounts. On the other hand, Gemini, which was founded in 2014 by the Winklevoss twins, is a much smaller exchange.
According to Wall Street Journal, people familiar with the matter confirmed that the accounts were approved in April, and transactions are just starting to be processed. They also said that the bank is mainly providing cash-management services to the firms and handling dollar-based customers.
Through the electronic funds transfer system, the bank will process wire transfers, and deposits and also withdrawals. However, the bank will no extend its services to any bitcoin or any other cryptocurrency-based transaction, whereby the firms will handle them.
JPMorgan Work with Coinbase and Gemini as a Trend Setter
For years, bankers have been showing concerns over Bitcoin shady use, hence no willing to open accounts for them. Some of the challenges include money laundering, which is very common with the cryptocurrencies, and also the unclear regulations around them.
The two cryptocurrency exchanges had to go through a long vetting process for them to get JPMorgan’s approval. It is reported that they were accepted due to the level into which they are regulated by different bodies.
It is noted that Gemini got its trust charter from the New York State Department of Financial Services in 2015. On the other hand, Coinbase is registered as a money service business with the Financial Crimes Enforcement Network (FinCEN), and also it has a specialized license for crypto business called the BitLicense, which is given by the DFS.
It is a plus for the crypto market, which is being perceived as a better alternative from the traditional stock market. Essentially because it is showing resilience from the ongoing coronavirus crisis that has left most businesses in a standstill.
Bitcoin is expected to reap hugely from the partnership, as more customers can now invest in it at their home comfort. The asset is fighting to outshine gold in the safe haven title, with more people gaining trust by the day.
It is trading around $8,900 at the time of writing, after shedding over $1000 after the halving. The volatility was anticipated, as the saying goes, buy the selling of the buying of the selling of the news, is currently at play.