JP Morgan to expand digital asset footprint as it explores crypto trading for institutional clients

• JP Morgan is looking to roll out crypto services for its institutional clients, according to Bloomberg.
• The plans include a potential offering of spot and derivatives trading.
• The move follows ongoing positive developments in crypto regulation.

JP Morgan is considering launching crypto trading services for its institutional clients as it looks to expand its presence in the cryptocurrency market, according to a Bloomberg report published on Monday.

The banking giant is assessing what products and services they could offer to expand its footprint in the digital asset market. This could include spot and derivatives trading, though the plans remain in early stages and depend on sufficient client demand, regulatory feasibility, and risk assessment.

The efforts follow rising institutional interest amid ongoing changes in the US regulatory environment around digital assets. Earlier this month, the Office of the Comptroller of the Currency (OCC) issued guidance permitting US banks to act as intermediaries for crypto, easing constraints that had previously limited bank participation in the space.

The potential move represents a shift for JPMorgan, whose CEO Jamie Dimon has historically dismissed Bitcoin as a "pet rock" and fraud. However, Dimon's stance has softened in recent months. At the company's investor conference in May, he stated that while he's not a fan of crypto, he defends people's right to invest in it.

JPMorgan’s crypto U-turn amid rising institutional demand

JP Morgan has already been expanding its digital asset infrastructure behind the scenes. The bank recently launched a tokenized money market fund, My OnChain Net Yield Fund (MONY), on the Ethereum blockchain, seeding it with $100 million. The fund allows qualified investors to earn yields on US Dollar (USD) through its Morgan Money liquidity management platform.

Additionally, JP Morgan arranged the creation, distribution and settlement of a short-term bond for Galaxy Digital Holdings on the Solana blockchain in December. The bank also plans to allow institutional clients to use their Bitcoin and Ethereum holdings as collateral for loans.

The move aligns JP Morgan with competitors already active in the space. Goldman Sachs has operated a crypto derivatives trading desk for several years, while Standard Chartered launched a trading service for institutional clients in spot Bitcoin and Ethereum through its UK branch earlier this year.

BlackRock, the world's largest asset manager, has amassed $68 billion in its IBIT Bitcoin exchange-traded fund (ETF) launched in 2024, demonstrating strong institutional demand for regulated crypto exposure.

Led by Bitcoin and Ethereum, the global cryptocurrency market is down nearly 2% at the time of publication on Tuesday.