JPMorgan to Start Banking Services for Crypto Exchanges Coinbase and Gemini
In April, Gemini and Coinbase reportedly had their accounts approved with JPMorgan Chase.
JPMorgan Chase, the largest bank of the United States, has reportedly taken on U.S. cryptocurrency exchanges Gemini and Coinbase as customers.
A piece of news from the Wall Street Journal on May 12 told unnamed references familiar with the matter, highlighting that the movement is the first time the banking giant has served clients from the crypto industry.
iece of news from the Wall Street Journal on May 12 told unnamed references familiar with the matter, highlighting that the movement is the first time the banking giant has served clients from the crypto industry.
Both exchange accounts reportedly admitted in April, with transactions now beginning to be processed, told the WSJ.
JPMorgan Chase is not processing BTC or other crypto transactions on behalf of the exchanges. Still, he is giving cash-management services and managing dollar transactions for their United States-based customers. The bank will process all the dollar deposits and withdrawals and wire transfers through the Automated Clearing House network.
Coinbase and Gemini Are Notably Regulated
The sources have declared that both exchanges asked to undergo a rigorous vetting method, guiding significant banks’ long-standing objection to producing relationships with crypto-related businesses.
Gemini and Coinbase have both established themselves as thoroughly-regulated objects; the latter, held by the Winklevoss twins, has previously formed criticisms from diehard libertarian crypto advocates for its controversial 2019 “crypto needs rules” ad campaign.
After being reviewed by Big Four accounting firm Deloitte, Gemini got a new security qualification and a Service Organization Control 1 Type 1 certification this April.
Coinbase Custody had, for its part, previously sealed both a SOC 1 Type 2 and a SOC 2 Type 2 evaluation by significant accounting firm Grant Thornton.
Coinbase is listed as a money services industry with the Financial Crimes Enforcement Network, and in 2015 Gemini got a trusted charter from New York’s Department of Financial Services.
Both exchanges have also met the conditions to operate under NYDFS’ critical BitLicense framework and are licensed money transmitters in many states.
JPMorgan’s Jamie Dimon Has Been a Vocal Bitcoin Expert
For those who have followed JPMorgan chairman and CEO Jamie Dimon’s position to the crypto space in recent years, the bank’s pathbreaking guide for both exchanges may be somewhat unexpected.
With his spicier announcements, Dimon said that BTC is “worse than tulip bulbs,” predicting that consideration on the coin “won’t end well.”
The bank has been sure about blockchain’s potential, though, and announced plans to publish its settlement-focused digital currency, JPM Coin, in 2019.
Lately, the bank has been examining the incorporation of its in-house blockchain unit Quorum - which holds its Interbank Information Network - with the well-known Ethereum-focused firm ConsenSys.
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