Author
Sujha Sundararajan
Author
Sujha Sundararajan
Share
US Banking giant JPMorgan will soon let clients buy Bitcoin, the bank’s CEO, Jamie Dimon said Monday at the bank’s annual investor day.
“We are going to allow you to buy it. We’re not going to custody it,” Dimon told investors. “We’re going to put it in statements for clients.”
CEO Dimon has been a Bitcoin critic, comparing the world’s largest crypto to smoking. He previously claimed that Bitcoin has no intrinsic value and is often misused by bad actors.
During the World Economic Forum in Davos, 2024, he told CNBC that Bitcoin “does nothing,” calling it the pet rock and “hyped-up fraud.”
However, on Sunday, he made it clear that his personal view on Bitcoin remains unchanged. He highlighted the crypto’s lack of ownership and issues such as its use in money laundering, terrorism and sex trafficking.
“I don’t think you should smoke, but I defend your right to smoke,” JPMorgan CEO said. “I defend your right to buy bitcoin.”
The development follows a similar move by Morgan Stanley, which began allowing financial advisors to pitch spot BTC exchange-traded funds (ETFs) to eligible clients.
JPMorgan Reportedly Plans to Offer Bitcoin ETF Access
A source close to the matter told CNBC that the bank is looking for ways to provide clients access to bitcoin ETFs. JPMorgan has so far limited its crypto exposure to offering futures and not direct Bitcoin ownership.
This comes at a time when there is a major shift in the regulatory landscape under the pro-crypto Trump administration. The SEC, led by Gary Gensler, launched several legal battles against a string of crypto firms.
The new wave of institutional adoption led by leading fintechs and banks comes as the Federal Deposit Insurance Corp (FDIC) provided new guidance. The agency said that FDIC-supervised institutions can engage in crypto-related activities without receiving prior FDIC approval, provided they manage risks.
Dimon Downplays Blockchain’s Importance
In his speech, JPMorgan CEO Dimon pushed back the hype around blockchain tech, calling it less important than it is made to be.
“We have been talking about blockchain for 12 to 15 years,” Dimon told investors. “We spend too much on it. It doesn’t matter as much as you all think.”
In the past, he took a more positive view of blockchain technology, recognizing its practical uses.
JPMorgan has been actively embracing the nascent tech for various projects, including its blockchain-based JPM Coin. Further, Kinexys, JPMorgan’s own blockchain platform, ran the first test transaction recently, settling a tokenized U.S. Treasury transaction on Ondo Chain’s testnet.
