JPMorgan has reaffirmed its commitment to permitting clients to trade Bitcoin and other cryptocurrencies.
Although the bank will not provide custody services immediately, it is broadening its blockchain initiatives and investigating how cryptocurrency fits into its overall market strategy.
Scott Lucas, JPMorgan’s global head of markets for digital assets, discussed the bank’s strategy in a CNBC interview, highlighting an “and” approach that integrates traditional financial infrastructure with upcoming blockchain opportunities.
Regarding crypto trading, Lucas stated, “Jamie [Dimon] made it clear during investor day that we would be active in that space, but custody isn’t currently on the agenda.”
The bank has been testing deposit tokens and stablecoins, which are tools that allow cash-like digital assets on distributed ledgers.
“Of course, we need custodians. Thus, we’re looking at which custodians would be suitable for our business model,” Lucas mentioned.
Lucas emphasized JPMorgan’s deposit token, JPMD, which is currently a prototype in the U.S., as a potential platform for client services and cash management solutions.
Stablecoins are also a priority, with Lucas indicating that any future issuance would likely be spearheaded by the bank’s payments division instead of its markets division.
Meanwhile, JPMorgan’s trading clients can utilize stablecoins for transactions and to explore new financial processes, demonstrating the bank’s aim to connect traditional markets with blockchain infrastructure.
Lucas further acknowledged the increasing significance of public blockchains in capital markets, pointing out that while JPMorgan maintains its internal platforms, it anticipates a growing proportion of market activities will gravitate toward public networks.
Earlier today, JPMorgan also announced a $1.5 trillion, decade-long “Security and Resiliency Initiative” aimed at enhancing key U.S. sectors, including energy, manufacturing, and defense.
The bank stated it plans to invest up to $10 billion in equity and venture capital to back domestic firms driving innovation and strategic manufacturing.
JPMorgan: Bitcoin is undervalued
Earlier this month, JPMorgan’s research indicated that Bitcoin might be undervalued compared to gold, with potential gains if the “debasement trade” persists. Analysts projected Bitcoin could reach $165,000, approximately 450% higher than current levels, based on comparisons adjusted for volatility against gold.
They noted that Bitcoin is becoming increasingly appealing compared to gold as the bitcoin-to-gold volatility ratio falls below 2.0.
Earlier this year, it was reported that JPMorgan Chase was contemplating a policy to lend directly against clients’ Bitcoin and crypto holdings, marking a potential first for the bank in accepting digital assets — not ETFs — as loan collateral.
Earlier in 2025, JPMorgan permitted clients to use Bitcoin ETFs as collateral and began factoring crypto holdings into net worth assessments alongside traditional assets.
