According to a Bloomberg report that cites an insider, JPMorgan Chase is considering the possibility of offering bitcoin trading services to its institutional clients.
The largest bank in the U.S. is evaluating potential offerings, which may include spot bitcoin trading and derivatives through its markets division. These discussions are still in the early stages, and no final decisions have been made to initiate these services, according to the report.
Any potential launch would hinge on various factors, such as client interest, internal risk evaluations, and the bank’s ability to structure options that comply with current regulatory standards. JPMorgan has not publicly addressed the report.
This internal assessment mirrors the increasing demand from large investors seeking access to digital asset markets through traditional financial institutions. Hedge funds, asset managers, and pension funds are increasingly looking for trading platforms that meet their compliance, governance, and execution needs.
Institutional clients generally focus on balance sheet stability, operational resilience, and access to regulated markets when exploring new asset classes. These criteria can limit the pool of viable counterparties, even as liquidity in crypto markets grows.
Scott Lucas, who heads digital assets within JPMorgan’s markets division, mentioned in a prior interview that the bank plans to engage in trading connected to digital assets but does not intend to offer custody services. This strategy resembles how some banks operate with commodities and other alternative assets.
Additionally, JPMorgan analysts recently indicated that bitcoin seems undervalued compared to gold following a significant sell-off in October, with strategists suggesting potential upward movement towards $170,000.
JPMorgan’s Shift on Bitcoin
The bank’s interest arises as U.S. regulatory conditions begin to evolve. Market participants anticipate advancements in federal digital asset legislation, while banking regulators have recently clarified that federally chartered banks can serve as intermediaries for certain crypto-related activities.
Over the past few years, JPMorgan has increased its involvement with blockchain technology, although it has not fully embraced cryptocurrencies as a primary asset class. The bank has focused on tokenization, on-chain settlement, and distributed ledger technology.
Earlier this year, it facilitated the issuance and settlement of a short-term bond for Galaxy Digital through the Solana network.
The firm has also stated that it plans to enable institutional clients to use bitcoin and ether as collateral in lending agreements, a move that recognizes demand while avoiding proprietary exposure.
Entering bitcoin trading would represent a notable change in stance for JPMorgan and its CEO, Jamie Dimon, who has critically addressed bitcoin in the past, while asserting that clients should be free to decide their own investments.
JPMorgan would not be the only global bank reevaluating crypto markets. Standard Chartered has begun spot trading for bitcoin and ether in its U.K. operations, while Goldman Sachs maintains a crypto derivatives desk.
