Jpmorgan's Crypto Investment: Which Coins Are They Betting On?

Despite JPMorgan CEO Jamie Dimon's well-documented distaste for cryptocurrencies, the bank has been exploring crypto and blockchain. JPMorgan has joined other legacy financial institutions in offering crypto-related services, including payments and exchanges. In March 2021, JPMorgan issued its first crypto-adjacent investment product, a structured note tied to the performance of bitcoin proxy stocks. The bank is also preparing to offer an actively managed bitcoin fund to certain private wealth clients, marking a significant shift in its stance towards crypto as an asset class. Additionally, JPMorgan has registered a trademark for cryptocurrency wallets, indicating its intention to provide crypto payment services.

JP Morgan's bitcoin fund

JP Morgan Chase is preparing to offer an actively managed bitcoin fund to certain private wealth clients, marking a significant shift for the $3 trillion bank and its CEO Jamie Dimon, who has expressed disdain for the cryptocurrency in the past.

The JPMorgan bitcoin fund, with NYDIG as the fund's custody provider, is expected to roll out as early as summer 2021. This move indicates a shift in the bank's stance towards crypto and blockchain technology, with its research analysts providing market insights on bitcoin's price and prospects to clients.

JPMorgan's bitcoin fund will differ from passive offerings by crypto firms like Pantera Capital and Galaxy Digital, which allow clients to buy and hold bitcoin without direct involvement. In contrast, JPMorgan's fund will be actively managed, giving clients direct exposure to bitcoin's performance.

The decision to launch the fund comes amid growing interest in cryptocurrencies and reflects the bank's recognition of client demand for such investment opportunities. While JPMorgan analysts previously expressed scepticism about bitcoin's long-term prospects, the fund represents a practical step towards embracing crypto as an asset class.

Despite Jamie Dimon's previous negative comments about bitcoin, the bank has gradually evolved its approach to crypto and blockchain. JPMorgan's Onyx division, for example, focuses on utilising blockchain technology to enhance interbank payments, and the bank has issued crypto-adjacent investment products.

Crypto payment services

JP Morgan is offering crypto payment services, including crypto payment processing, virtual checking accounts, and more. The legacy bank has officially registered and patented the "J.P. Morgan Wallet" under the United States Patent and Trademark Office (USPTO). This allows them to offer crypto and bitcoin services to their customers.

The crypto payment services provided by JP Morgan will include cryptocurrency transfers on the blockchain, cryptocurrency exchange services, and cryptocurrency payment processing services. This means that customers will be able to process crypto payments through credit and cash cards and handle foreign exchange settlements in different currencies across borders. Additionally, JP Morgan will provide services for creating and managing virtual checking accounts.

The bank's move towards crypto and blockchain exploration comes despite CEO Jamie Dimon's well-documented personal disdain for crypto and his belief that cryptos are not a good investment. Dimon has, in the past, referred to bitcoin as a "dangerous fraud" and argued that government regulation of cryptocurrencies is inevitable. However, the bank has gradually evolved its treatment of crypto and blockchain, with its research analysts regularly issuing market insights on bitcoin's price and prospects in reports available to clients.

JP Morgan's Onyx division is at the forefront of this evolution, working to speed up interbank payments via blockchain technology and JPM coin. The division has been quietly developing for five years and is now mounting a global hiring campaign for blockchain engineers. JP Morgan is also preparing to offer an actively managed bitcoin fund to certain clients, marking a sharp turn for the $3 trillion bank.

Crypto wallet trademark

JPMorgan Chase & Co. (JPM), America's largest bank, has officially registered a trademark for cryptocurrency wallets. The "J.P. Morgan Wallet" was registered under the United States Patent and Trademark Office (USPTO) on November 15, 2022, and published on November 21, 2022.

Despite CEO Jamie Dimon's scepticism towards cryptocurrencies as an investment, JPMorgan has been actively exploring crypto and blockchain technologies. The trademark registration indicates that the bank intends to offer crypto payment services to its customers, including crypto payment processing, virtual currency transfers and exchanges, and virtual checking accounts.

According to Mike Kondoudis, a USPTO licensed trademark attorney, the approval means that JPMorgan will provide the following services:

• Virtual currency transfer and exchange
• Crypto payment processing
• Virtual checking accounts
• Financial services

The move positions JPMorgan alongside other legacy financial institutions, such as Fidelity Bank and New York Bank Mellon, in offering crypto-related services. The timing of this development is particularly notable, as it comes amidst the fallout from the FTX collapse and a period of uncertainty in the crypto market.

Crypto-adjacent investment products

JPMorgan Chase & Co. (JPM) has shown a growing interest in the cryptocurrency space, despite CEO Jamie Dimon's well-known personal disdain for crypto. The bank has been exploring crypto and blockchain, joining other legacy financial institutions in offering crypto-related services.

In March, JPMorgan issued its first crypto-adjacent investment product, a structured note tied to the performance of bitcoin proxy stocks such as MicroStrategy and Riot Blockchain. This move marked a significant shift for the $3 trillion bank, which had previously taken a cautious approach to crypto.

JPMorgan's Onyx division is at the forefront of this shift, working to speed up interbank payments via blockchain technology and JPM coin. The division has been quietly developing these technologies for five years and is now actively hiring blockchain engineers globally.

In addition to its crypto-adjacent investment product, JPMorgan has also filed a trademark for a cryptocurrency wallet, "J.P. Morgan Wallet." This enrollment will allow the bank to offer crypto and bitcoin services to its existing customers, including crypto payment processing and virtual checking accounts.

While JPMorgan continues to explore the crypto space, it is important to note that the bank's CEO, Jamie Dimon, has not always been supportive of cryptocurrencies. He has previously called bitcoin a "dangerous fraud" and argued that government regulation of cryptocurrencies is inevitable. However, the bank seems to be responding to client demand for crypto-related services, indicating a growing acceptance of crypto as an asset class.

Blockchain technology

The company's Onyx division, for example, focuses on utilising blockchain technology to facilitate interbank payments and develop the JPM coin. Onyx is also actively hiring blockchain engineers to further enhance its capabilities in this domain.

Additionally, JP Morgan has recognised the potential of blockchain technology in addressing challenges in the pharmaceutical industry. Blockchain ledgers, along with other technologies such as IoT asset tracking and product packaging authentication, can provide much-needed visibility and security to the pharma supply chain, helping to tackle the issue of counterfeit drugs.

Furthermore, JP Morgan has registered a trademark for cryptocurrency wallets, indicating its interest in offering crypto payment services. The "J.P. Morgan Wallet" will enable the bank to provide its customers with services related to cryptocurrency transfers, exchanges, and payment processing, including processing crypto payments through credit and cash cards.

Overall, JP Morgan's exploration of blockchain technology showcases its recognition of the potential benefits this technology can bring to various industries, including increased security, transparency, and efficiency. By leveraging blockchain solutions, JP Morgan aims to help businesses address complex challenges and drive innovation in their respective fields.

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