JPMorgan is looking to increase its exposure to blockchain technology and cryptocurrencies, and is now developing plans to offer cryptocurrency trading services, according to a company executive.
However, holding cryptocurrencies directly is currently off the table.
Speaking on CNBC’s Squawk Box Europe on Monday, Scott Lucas, head of global markets and digital assets at JPMorgan, said: he asked If the banking giant were to follow rivals like Citibank in holding cryptocurrencies for its clients.
In response, Lucas clarified that the bank is not on the “near-term horizon,” but confirmed that it is looking to offer cryptocurrency trading services.
“I think Jamie (Dimon) was very clear at the investor day that we would be involved in trading that, but custody is not on the table right now,” he said, adding:
“There are a lot of questions about our risk appetite and how far we want to go down that road, from the trading and other aspects of it, and the custody that I think will follow.”
Lucas said JPMorgan is currently exploring what “suitable custodians” for the company would look like.
JPMorgan’s “And” Approach to Cryptocurrencies
During the interview, Lucas referenced JPMorgan’s “and” approach several times, explaining that the bank is looking to capitalize on multiple opportunities in the sector, rather than focusing on one possibility versus another.
“I think when it comes to how we approach this, we’re very much taking an ‘and’ approach. There’s the existing market and there are opportunities to do new things. And those ‘and’ opportunities are not exclusive to one or the other,” he said.
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JPMorgan is gradually beginning to take a more expansive approach to crypto and blockchain in 2025, with partnerships with industry giants like Coinbase being a prime example.
The increased participation appears to be due in part to a change in tone from CEO Jamie Dimon, who has been skeptical of the cryptocurrency space.
After a long history of criticizing the cryptocurrency space, Dimon stated in August that he had become a “believer in stablecoins” and said he saw value in blockchain technology.
Speaking about JPMorgan’s deposit token JPMD, which launched in beta on Base in June, Lucas said that while the banking giant is excited about its potential to serve institutional clients, it is also keeping an eye on stablecoins.
“So when it comes to JPMD, I think it’s really exciting, there’s a real opportunity for us to think about how we can provide different services to our clients on the fiat side. As well as responding to client demand to do things like stablecoins,” he said, adding:
This strategy is still emerging, as you understand. It’s only been a few months since we’ve had more clarity around what opportunity looks like.
In terms of the broader blockchain space, Lucas also mentioned that JPMorgan doesn’t see just one network, like Ethereum, dominating the market and becoming the main focus of activity.
Instead, he sees many opportunities for the bank to jump into in the near future.
“I don’t think there will be one, and in fact we expected some consolidation in this space, and now we’re seeing a bunch of new layer-one rollouts…so there’s a lot to play for when it comes to public blockchain, we definitely see an opportunity there and we’ll be doing things in that space in the coming quarters.”
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