JPMorgan’s next step in digital assets shows how traditional finance is adapting to blockchain innovation.
Scott Lucas outlines JPMorgan’s plan to bridge traditional finance with digital trading
Photo Credit: Reuters
Traditional finance giant JPMorgan Chase is preparing to expand its blockchain and cryptocurrency footprint and plans to offer crypto trading services to its clients, according to details shared by a company official with CNBC. The decision reflects the broader institutional acceptance of blockchain technology and represents a significant change in the bank's approach to digital assets. However, the institution clarified that direct crypto custody remains off the table for now, as it continues to evaluate regulatory, operational, and risk management frameworks related to digital asset handling.
JPMorgan's global head of markets and digital assets, Scott Lucas, told CNBC that JPMorgan is building internal infrastructure to enable clients to trade digital assets securely. The development is in line with the company's fundamental strategy to use innovation and compliance to incorporate blockchain into conventional markets. The move also follows a series of blockchain initiatives from the bank, including the JPM Deposit Token (JPMD), launched in pilot phase on Base in June, designed to streamline institutional payments.
“There's a lot of questions around our own risk appetite and how far we wanna go down that path, from trading and other sides of it, and custody, I guess would follow,” he said on CNBC's Squawk Box Europe podcast on Monday. Lucas also mentioned that the firm is exploring what “the right custodians” could look like for its future operations.
Lucas described the firm's strategy as an “and” approach to digital finance, which means JPMorgan plans to balance its presence in traditional markets while expanding into decentralised opportunities. As the bank seeks to improve institutional access to blockchain-based assets, this includes possible partnerships with crypto-native organisations like Coinbase. He also pointed out that recent regulatory clarity has encouraged broader institutional participation in stablecoins and tokenised deposits.
The change comes with a significant shift in JPMorgan CEO Jamie Dimon's stance, as the former critic of cryptocurrency has now recognised the benefits of stablecoins and blockchain technology.
Lucas concluded that the bank does not expect one blockchain, such as Ethereum, to dominate the sector, instead foreseeing multiple Layer-1 networks coexisting and offering new opportunities in the future.
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