JPMorgan Extends Banking Services To Bitcoin Exchanges


    According to The Wall Street Journal, JPMorgan Chase has taken on Coinbase and Gemini Trust as banking customers (Warning: source paywalled; alternative source) — “the first time the bank has accepted clients from the cryptocurrency industry.” From the report: The move is the latest in a string of positive developments for bitcoin and another sign that Wall Street is becoming more comfortable with the business of cryptocurrencies. Coinbase, founded in 2012, is the largest U.S.-based bitcoin exchange, with more than 30 million accounts. Gemini, founded in 2014 by Tyler and Cameron Winklevoss, is a smaller exchange, but it has been in the vanguard of the industry’s movement to attract mainstream clients and embrace regulation. The accounts were approved in April, and transactions are just starting to be processed, the people said. The bank is primarily providing cash-management services to the firms and handling dollar-based transactions for the exchanges’ U.S.-based customers, according to the people. It will process wire transfers, and deposits and withdrawals through the Automated Clearing House network, an electronic funds-transfer system. Although Coinbase and Gemini are built around trading cryptocurrencies, many of their customers link traditional bank accounts to their accounts on the exchanges. Handling transfers in and out of those bank accounts requires a payments processor. JPMorgan’s services don’t extend to any bitcoin or cryptocurrency-based transactions. The firms handle those themselves. Read more of this story at Slashdot.


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