JPMorgan Chase & Co. is considering whether to offer crypto trading services to institutional clients, Bloomberg reported on Friday, citing people familiar with the matter.
The move would make the nation’s largest bank by assets one of the most prominent financial institutions yet to consider entering the crypto trading space for major clients. According to the report, JPMorgan is evaluating different types of products, including spot trading and derivatives trading, but has not committed to launching any specific services. This decision will depend on customer demand, perceived risks, and whether the bank sees long-term business opportunities in this area.
JPMorgan’s review comes as large investors, from hedge funds to pension managers, seek safer, more regulated ways to trade digital assets. These customers are often unable or unwilling to use retail-focused platforms like Coinbase (COIN) and Binance due to compliance, custody, and trade execution concerns. Instead, they require specialized infrastructure to process large trades, provide deeper liquidity, and meet institutional compliance standards.
Coinbase Prime is one of the leaders in the US as a customized cryptocurrency trading platform for institutions, but competition is increasing. Bullish, which owns CoinDesk, operates a digital asset exchange built for institutional trading. Kraken offers similar services through its Kraken Institutional platform. Several other companies are also active in this space, including Fidelity Digital Assets and Galaxy Digital. JP Morgan may be added to this list.
The regulatory environment surrounding cryptocurrencies in the United States is beginning to show signs of change, with important crypto legislation expected to be passed soon. The decision gave many financial institutions greater confidence that the digital asset market is maturing with clearer rules, despite continued price volatility through the end of the year.
A representative for JPMorgan had no immediate comment on the matter.
