JPMorgan Chase adds Coinbase and Gemini to their clientlist! JPMorgan Chase adds Coinbase and Gemini, two popular regulated exchanges, to their list of customers! The fact that both of these exchanges are regulated was an important factor in the approvals.
This move by JPMorgan Chase is notable as CEO Jamie Dimon once called Bitcoin and Cryptocurrency a scam and said that he would not get involved. It’s also notable as this could open the floodgates for other cryptocurrency firms to get banking services from mainstreet financial institutions – up until now, there are just a handful of banking institutions willing to do business with Cryptocurrency companies.
The traditional finance industry is becoming more and more open to the financial technology represented by blockchain and their interest in blockchain and cryptocurrency as an investment vehicle is more apparent than ever. This year alone, Bitcoin is up 20% while the S&P 500 stock index is down nearly 10%. Oil has fallen 66%. Gold, a traditional safe haven is up 11.5%, nothing to scoff at, but only half of Bitcoin’s gains.
Last week, Paul Tudor Jones revealed his Tudor BVI Global Fund is now authorized to invest in Bitcoin futures. JPMorgan Chase will provide Coinbase and Gemini users with deposits and withdrawals via wire transfer and automated Clearing House (ACH) transactions. They will also help the exchanges with cash management services.
Here’s what we have to say:
“Jamie Dimon, CEO of JP Morgan Chase Bank, has been vocal about his dislike for Bitcoin. It’s interesting to see his actions aren’t aligning with his words. I don’t think it’s far-fetched to think that one day the central banks will offer an easy gateway for USD/Cryptocurrency conversion.”
What do you think? We’ve always said that 2020 would be a year of more adoption – is this another sign that adoption is happening? Let us know on our Facebook page!