Inside JP Morgan’s ‘and’ strategy for a trillion-dollar crypto future

Key Takeaways

How is JP Morgan approaching blockchain technology?

The bank is taking a “both/and” approach, leveraging its internal blockchain for client trades and exploring public blockchains like Ethereum, as well as emerging layer-one networks from Google, Swift, and Stripe.

Will JP Morgan offer crypto custody services?

Not in the near term, but custody could follow later, depending on risk appetite and market developments.

JP Morgan is set to deepen its footprint in the crypto space, signaling plans to offer cryptocurrency trading services while strategically leaning on third-party custodians rather than managing assets directly.

JP Morgan’s crypto push

Speaking on CNBC’s Squawk Box Europe, Scott Lucas, the bank’s global head of markets and digital assets, emphasized JP Morgan’s “and” approach, aiming to pursue multiple opportunities in the digital assets sector rather than limiting itself to a single avenue.

Lucas said, 

“I think when it comes to how we approach this, we’re very much taking an ‘and’ approach. There’s the existing market and there’s opportunities to do new things. And those ‘and’ opportunities aren’t exclusive to one or the other.”

For those unaware, J.P. Morgan is expanding its digital asset offerings through its deposit token, J.P.M.D., and exploring stablecoins amid clearer regulations.

Leveraging its internal blockchain for client trades, the bank is also eyeing public blockchains like Ethereum [ETH] and emerging layer-one networks from Google, Swift, and Stripe.

This “both/and” approach combines proprietary infrastructure with public networks, reflecting J.P. Morgan’s push to lead in digital asset innovation.

JP Morgan crypto custody plan

The conversation then shifted to crypto custody, with JP Morgan hinting at plans for a service covering Bitcoin [BTC], Ethereum, and other tokens.

Although the bank acknowledged the importance of custody, it is currently focused on other areas within the digital assets space, reflecting a cautious and strategic approach.

Scott Lucas explained:

“For JP Morgan side I don’t think that’s in the near term horizon for us. I think Jamie (JP Morgan CEO) was pretty clear at Investor Day that we’re going to be involved in the trading of that.”

He added, 

“But custody is not on the table at the moment. There’s a lot of questions around our own risk appetite of how far we want to go down that path from trading and other sides of it.  And then custody I guess would follow.”

What’s more?

Meanwhile, JP Morgan’s stock traded at $307.97 at press time, following a 2.35% rise, reflecting investor optimism. 

This followed the announcement of a direct bank-to-wallet connection with Coinbase, set for 2026. This will enable seamless transactions, credit card funding, and rewards integration for mutual customers.

In short, once skeptical, CEO Jamie Dimon now acknowledges the legitimacy of blockchain and stablecoins, signaling a strategic pivot toward decentralized finance.

With these initiatives, JP Morgan is laying the infrastructure to tap into what it sees as a multi-trillion-dollar opportunity.