JPMorgan Considers Cryptocurrency Trading for Institutional Clients

Following a December 9 interpretive letter from the U.S. Office of the Comptroller of the Currency confirming that national banks may conduct ‘riskless principal’ crypto transactions, JPMorgan is evaluating the launch of crypto trading services for institutional investors. The OCC guidance allows banks to broker crypto trades without holding inventory or taking market risk, a move that could reshape U.S. market competition by enabling regulated banks to capture retail order flow. Experts suggest this will pressure standalone exchanges like Coinbase, Gemini, and Kraken, while offering mainstream consumers trusted banking channels for basic crypto exposure. JPMorgan’s exploration follows similar initiatives by Goldman Sachs, BNY Mellon, and other large banks that have developed custody or settlement systems. While banks are expected to focus on a small set of highly liquid assets such as bitcoin, ether, and regulated stablecoins, industry participants foresee both competitive and partnership opportunities between banks and crypto-native firms.