JP Morgan’s COO Believes The Bank Will Start Offering Bitcoin Services Soon
The success of the leading and most valuable cryptocurrency, Bitcoin, is everyone is and will be getting involved with. The cryptocurrency had doubled in price value in the last 90 days, amidst several record-breaking price highs. The success of the cryptocurrency has propelled several altcoins to record-breaking heights too.
Many traditional financial institutions like commercial banks, investment managers, etc., have started to offer Cryptocurrency and Bitcoin-related services to meet the demands of their customers. The Chief Operating Officer of one of the world’s leading investment banks, JP Morgan, has recently admitted that the demands of Bitcoin by its customers could force them into trading the cryptocurrency.
Customer demand will force many banks into crypto trading services
In a recent meeting of the Bank with its executives, Daniel Pinto, who doubles as Vice President and COO of the Bank, told reporters that the Bank is already exploring the idea of trading the volatile assets. Pinto believes that the new general acceptance of cryptocurrency assets like Bitcoin over known traditional assets has been one of the driving forces behind adopting the assets by several financial and technology firms across the world.
The investment bank’s Executive feels that the only reason the Bank is uninvolved is the low demand for crypto trading services. He confirms that a few of their institutional clients are already envisaging the idea of the bank offering crypto services. According to Daniel Pinto, the Volatile nature of Bitcoin and many cryptocurrency assets is one reason why many big financial institutions are yet to get involved.
The cryptocurrency market is not regulated and insured, unlike the normal stocks market which the banks are the big players in it. However, the growing demands of customers will force many financial institutions like banks and investment managers to offer crypto trading services. According to Pinto, JP Morgan is yet to experience such humongous demands at the moment.
Cryptocurrency successes and not demands will force banks into it
In Pinto’s speech, the business executive admitted that when JP Morgan finally decides to start offering crypto trading services, it will choose a very good cryptocurrency exchange with a sound knowledge of cryptocurrency trading. The investment manager likened Coinbase to such characteristics. He believes that their experience and exposure in the Blockchain technology space will be an added advantage to the Bank when trading.
The general notion surrounding the non-involvement of several big banks in crypto trading has been attributed to several reasons. Ranging from a lack of investment insurance to the non-regulated and unstable nature of the assets and markets. However, many analysts believe that the success of digital assets like Bitcoin and Ethereum will drive banks to start trading them, rather than the demand from customers as claimed. However, the situation will be a big win for the cryptocurrency space if the big banks eventually become players.
