JPMorgan Chase has opened bank accounts for cryptocurrency exchanges Coinbase and Gemini Trust, a Wall Street Journal report said. The largest U.S. bank has previously been critical of cryptocurrency, and its willingness to do business with exchanges could motivate other banks to provide banking services. The question is whether this exposes the banking system to cryptocurrency risks.
California-based Coinbase is one of the biggest digital currency exchanges in the U.S. and currently has over 30 million users, with over $150 billion traded on the platform to date. Gemini Trust, started by Tyler and Cameron Winklevoss, is not as large but is seen by some as the most conservative or institutional. It offers a crypto wallet, trading, custody and clearing solutions.
With this new relationship with JPMorgan, which has more than $3 trillion in total assets, the crypto exchanges will be able to accept account to account payments. Until now, when customers provided bank details, the exchanges relied on payment processors.
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