Milestone in the Crypto Market! JPMorgan to Provide Business Support for Coinbase and Gemini

The largest bank in the United States, JPMorgan Chase, has changed its previous anti-cryptocurrency stance and agreed to provide banking services to cryptocurrency exchanges Coinbase and Gemini. This is crucial for emerging markets like Bitcoin and cryptocurrencies.

JPMorgan Enters Cryptocurrency Business for the First Time

According to the Wall Street Journal report, Coinbase and Gemini received approval from JPMorgan in April this year, marking the first time the U.S. banking giant has provided business support to cryptocurrency service providers. Specifically, JPMorgan will allow the two U.S. cryptocurrency exchanges, Coinbase and Gemini, to integrate with JPMorgan's ACH (Automated Clearing House), enabling exchange users to execute functions such as withdrawals, deposits, and wire transfers through JPMorgan. Mike Novogratz, CEO of Galaxy Digital and former partner at Goldman Sachs, commented that the bank's willingness to support exchanges is because they recognize that the "future" will involve cryptocurrencies, digital assets, and blockchain-based systems.

The JPM announcement that they will provide banking services to Coinbase and Gemini is a big deal. Go $BTC. It is recognition that the future will include crypto currencies, digital assets, and blockchain based systems.

— Mike Novogratz (@novogratz) May 12, 2020

Despite Bitcoin's censorship resistance and independence from government, central banks, or central authorities, the development of the network to achieve widespread adoption may take longer without the participation or support of major financial institutions. JPMorgan not only provides service support for exchanges but also builds an important bridge for the cryptocurrency ecosystem. If banks are unwilling to provide services that allow users to connect their accounts to cryptocurrency exchanges for smooth and fast fiat transfers, the level of adoption of cryptocurrencies may be limited.

From Opposition to Support

Interestingly, JPMorgan's approval seems to mark the end of the "anti-cryptocurrency era" led by the bank's CEO, Jamie Dimon. In September 2017, Jamie Dimon publicly criticized Bitcoin as a fraud and even threatened to fire any "stupid employee" trading cryptocurrencies under the company. Although Dimon admitted his regret for those remarks in a subsequent interview the following year, he still emphasized his lack of interest in the Bitcoin topic.

In fact, JPMorgan could have chosen not to provide business support to exchanges, reducing the public's exposure to Bitcoin. However, JPMorgan chose to approve the exchanges' applications, providing a bridge for "converting dollars into Bitcoin and other cryptocurrencies." This may indicate the bank's partial acceptance of Bitcoin.

With the macroeconomic uncertainties such as continuous fiat currency issuance, uncertainty, increasing debt, and shrinking GDP, Bitcoin is gradually becoming a focus for global investors. Last week, hedge fund investor Paul Tudor Jones announced his investment in Bitcoin as a hedge against currency inflation, stating that Bitcoin will account for 2% of his investment portfolio. With more and more dollars flowing into cryptocurrencies and digital assets, the position of this field in the financial system will become increasingly solid.

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