Contrary to previous scepticism about bitcoin expressed by Wall Street banks, recent developments indicate that traditional financial institutions are more open-minded about the largest crypto asset, with some considering offering bitcoin services.
JPMorgan Could Offer Bitcoin Trading Upon Clients Demand
In an interview with CNBC, Daniel Pinto, co-president and chief operating officer of JP Morgan, said that the banking giant was looking to offer bitcoin trading. However, the decision would be influenced by high demand from the bank’s clients for the crypto asset.
In a town hall meeting with thousands of sales personnel and traders around the world, JPMorgan’s employees asked when the bank was going to get involved in bitcoin. In response to the question, Pinto was reportedly open-minded towards the flagshop crypto.
Speaking with CNBC, the JPMorgan executive said that it was only a matter of time before there was a demand for BTC from its clients. According to Pinto:
“If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved. The demand isn’t there yet, but I’m sure it will be at some point.”
Furthermore, the bank’s co-president mentioned BlackRock’s bitcoin move back in January, which was proof of a broader adoption. As reported by BTCManager, a pair of SEC filings by the world’s largest asset manager suggested that BlackRock was looking to invest in Bitcoin futures through two of its funds.
The JPMorgan executive also added that if bitcoin became regulated, trades would involve vetted clients along with regulated exchanges, including Coinbase. Pinto’s comments contrast with earlier sentiments shared by the bank’s CEO, Jamie Dimon, who called bitcoin a fraud.
Apart from JPMorgan, more Wall Street Banks are beginning to look into bitcoin. Another investment banking behemoth held a private meeting with the CEO of crypto company Galaxy Digital, Michael Novogratz, for its clients and employees. Recently, BNY Mellon, America’s oldest bank, announced plans to begin offering crypto custodial services for its clients.
More Institutional Investors Purchase Bitcoin
Meanwhile, bitcoin continues to see increased adoption from institutional investors as the number one crypto asset continues to gain more popularity. Some companies are already considering making BTC a payment method.
Electric vehicle manufacturer Tesla invested $1.5 billion into bitcoin, with plans to start accepting bitcoin as a payment method for its products. Also, credit card giant Mastercard which only partnered with cryptocurrency firms to issue crypto cards, revealed that it was planning on supporting some crypto assets on its network. With this plan, Mastercard’s merchants would be able to receive bitcoin directly.