The largest bank in the US, JP Morgan Chase, is reported to have opened accounts for two of the famous crypto exchanges in the market.
The accounts of these two exchanges are said to have been approved in April. The transactions have just begun this month, the report said, citing a ‘familiar’ source. It is said that JP Morgan will be providing cash-management services to the exchanges and wouldn’t be processing Bitcoin.
All the wire transfers, dollar deposits, and withdrawals, transactions with the US-based clients of the two crypto exchanges will be handled through Automated Clearing House Network. The customers of the crypto exchanges link their bank accounts to their crypto accounts. This makes it essential to have a payment processor to handle the cash transactions.
Jamie Dimon’s Change of Heart
From disliking crypto to showing interest in it and supporting it, Jamie Dimon has come a long way. In September 2017, Dimon called crypto a ‘fraud’ and said that it would blow up one day and kill people. Then less than five months later, he said that the statement shouldn’t have been made.
In mid-Feb 2019, JP Morgan announced its digital asset, JPM Coin to facilitate immediate payments using blockchain technology. Recently, it has been mentioned that the research team has advised the bank to add cryptocurrency to their investment portfolio. There are also reports about JP Morgan planning a merger of its in-house blockchain unit Quorum with ConsenSys, a popular Ethereum-based exchange. It seems like the overall opinion about Bitcoin and crypto are changing.
A Carefully Measured Step into the Crypto Market
Sources mentioned that both the crypto exchanges, Coinbase and Gemini have been put through a strict vetting process before their accounts have been approved. This comes from the bank’s not-so-positive view of crypto and from wanting to not let go of an opportunity to step into what looks like a growing and lucrative market.
Coinbase and Gemini are regulated exchanges. While Coinbase is registered as money services business with the Financial Crimes Enforcement Network and has both (Service Organization Control) SOC 1 Type 2 and SOC 1 Type 2 certification, Gemini has recently SOC 1 Type 1 certification in April 2020. Gemini also has a trust charter from New York’s Department of Financial Services obtained in 2015.
The exchanges are licensed money transmitters in many states and have met the requirements to operate under the BitLicense framework of NYDFS.
In Other News- Bitcoin Halving
The much-awaited Bitcoin halving proved to be a rather dull event for the market. But the price has already begun to raise post the event that occurred on 11th May at 19.23 UTC. The famous cryptocurrency was trading at $8,829, up by 1% at the press time. Bitcoin halving has once again (for the third time) cut miners’ rewards by half from 12.5 bitcoin to 6.25 bitcoin.
There has been an increase in the active addresses. Though it may not mean new investors, it does mean increased activity, which is a good sign.
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