JPMorgan Chase reportedly weighs crypto for institutional clients
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This holiday season, JPMorgan Chase appears to be having a change of heart on crypto.
Why it matters: JPMorgan CEO Jamie Dimon has long derided cryptocurrencies like bitcoin, famously calling it a "fraud," "stupid" and "worthless" — and even saying he'd fire any employees found trading it.
The latest: JPMorgan is "considering offering cryptocurrency trading to its institutional clients," Bloomberg reported Monday.
- The bank is reportedly "assessing what products and services its markets division could offer to expand its footprint in cryptocurrencies," potentially including spot and derivatives trading.
- JPMorgan reps did not immediately respond to Axios requests for comment.
The intrigue: Dimon had already been signaling a softening on crypto.
- At the company's investor day in May, he reiterated questions about "leverage in the system," "misuse," "terrorism" and other concerns.
- But he also said JPM wouldn't stand in the way of people who want to invest in it.
- "I am not a fan of it," Dimon said. "We are going to allow you to buy it, and we're not going to custody it. We're going to put it on statements for our clients. So I don't think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin, go at it."
The big picture: The normalization of crypto has been years in the making — but it's accelerated recently as it makes its way into a broader set of portfolios than the early adopters who were responsible for its initial surge.
- Bitcoin is now an investment held by regular people who want to diversify their portfolio, Axios' Brady Dale reported in May.
- The approval of Bitcoin ETFs in 2024 proved that a lot of capital had been waiting to hit "buy" on bitcoin as soon it got some kind of regulated wrapper.
- Goldman has a trading desk for crypto derivatives.
- JPMorgan, meanwhile, already hatched "plans to allow institutional clients to use their holdings of bitcoin and ether as collateral for loans," Bloomberg reported.
The bottom line: Despite a turbulent year, crypto is gaining broader acceptance.
