Wall Street’s Biggest Name Inches Deeper Into Crypto
Key Highlights:
• JPMorgan plans to roll out crypto trading services but will avoid direct custody amid regulatory uncertainty.
• CEO Jamie Dimon softens his stance on digital assets as the bank tests its own deposit token, JPMD, on Base.
Paradisers! After years of skepticism, JPMorgan is finally stepping closer to the crypto frontier, though with a distinctly risk-managed approach.
The banking giant is preparing to launch cryptocurrency trading services, according to Scott Lucas, head of global markets and digital assets, but will not yet custody crypto assets internally.
Lucas told CNBC that the decision balances demand with caution: “We’re expanding trading-related activities, but internal custody remains off the table for now.”
He added that the bank’s trajectory will depend on “regulatory clarity and internal risk assessments,” two factors JPMorgan views as essential before offering full-scale digital asset services.
Jamie Dimon’s Slow U-Turn on Crypto
This move signals a notable shift from CEO Jamie Dimon’s long-standing criticism of crypto. Once a fierce skeptic who labeled Bitcoin a “fraud,” Dimon has since adopted a more nuanced view, acknowledging the utility of stablecoins and blockchain technology in modern finance.
Lucas echoed that change in tone, saying the bank now sees strong institutional demand for tokenized cash and stable-value assets, especially as global liquidity providers explore blockchain-based settlement rails.
In practice, that means JPMorgan’s strategy is moving from “if” to “how.” Its JPMD deposit token, currently being piloted on Base, represents a direct experiment in blockchain settlement, bridging traditional finance with programmable money.
The Multi-Chain Mindset
Unlike many firms tied to one ecosystem, JPMorgan is embracing a multi-chain future. Lucas emphasized that the bank expects “continued competition among blockchains” and views that diversity as “an advantage, not a hindrance.”
That philosophy aligns with the bank’s “and” strategy, expanding traditional services and experimenting with blockchain-based ones simultaneously. The approach gives JPMorgan flexibility to scale digital initiatives without fully committing to a single chain or custody framework.
Trading First, Custody Later
For now, crypto trading is the priority, not storage. JPMorgan intends to participate in trading-related activities through partner institutions and blockchain integrations, avoiding the regulatory quagmire of direct asset custody.
MCP analysts view the move as a cautious re-entry into crypto markets, one that positions JPMorgan to profit from institutional trading demand while minimizing headline risk.
We will cover this cautious-but-calculated strategy in our MCP YouTube stream, where Simon will break down why major banks like JPMorgan are testing liquidity rails before vault doors.
A deeper dive into how the JPMD token could reshape interbank settlement, and why custody avoidance might actually be a strategic advantage, will be detailed in MCP News Private this week. It’s $3/month, cheaper than a sandwich, but it feeds you insights Wall Street won’t.
