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In a watershed statement, JPMorgan Chase CEO Jamie Dimon announced that clients of the bank will be able to purchase Bitcoin shortly. The move is an important change of heart for JPMorgan, even though Dimon is still an individual skeptic of the cryptocurrency itself. The move was made public at the bank’s annual Investor Day on Monday, as one of the world’s biggest financial institutions opened up to a new era.
Jamie Dimon’s Views on Bitcoin
Jamie Dimon, an avowed critic of Bitcoin for many years, did not mince words about his doubts. “We’re going to let you trade it,” Dimon said to shareholders, further stating that no plans exist to hold Bitcoin in reserve. He continued to voice his suspicions about the use of Bitcoins for criminal purposes, such as sex trade and money laundering.
Dimon also expressed doubt about the significance of blockchain technology, one of the bedrocks of the crypto sector. “We’ve been speaking about blockchain for 12 to 15 years,” he stated. “We invest too much in it. It doesn’t matter as much as you guys think.” In spite of his doubts, however, JPMorgan still invests in blockchain development. The bank’s blockchain platform, Kinaxis, just performed its inaugural test transaction on an open blockchain, settling tokenized U.S. Treasuries on Ondo Chain’s testnet.
Why This Matters to JPMorgan Clients
For JPMorgan’s customers, this is an opportunity to gain exposure to Bitcoin without taking on the burden of storing and transacting in it. The bank won’t be taking custody of it, but it will allow customers to buy it using its platform. The move is one of many made by conventional financial institutions looking to venture into cryptocurrency offerings. But JPMorgan’s cautious position is an indication of crypto’s associated operational and regulatory hurdles.
The Future of Blockchain at JPMorgan
In spite of Dimon’s words, however, JPMorgan is still keen to pursue blockchain technology. The bank’s Kinaxis platform is proof of its ongoing interest in the sector. The platform just ran its first-ever public blockchain test, which is an important milestone in its blockchain development process.
Key Takeaways from the Announcement
- Soon, clients of JPMorgan can purchase Bitcoin on the bank’s platform.
- The bank won’t provide custodial services for Bitcoin.
- Jamie Dimon is still doubtful about blockchain and bitcoin.
- JPMorgan keeps investing in blockchain projects, such as its Kinaxis platform.
Frequently Asked Questions
Will JPMorgan offer custody services for Bitcoin?
No, JPMorgan is not planning to provide custody for Bitcoin as yet.
What is Jamie Dimon’s stance on blockchain technology?
While Dimon has questioned the significance of blockchain, JPMorgan is still investing in blockchain programs.
How do clients of JPMorgan purchase Bitcoin?
The clients will be able to directly buy Bitcoin on JPMorgan’s platform, but the bank won’t keep it in its custody.
What is the significance of JPMorgan’s Kinaxis platform?
Kinaxis is JPMorgan’s blockchain platform, which has just carried out its inaugural public blockchain trial, settling tokenized U.S. Treasuries on Ondo Chain’s testnet.
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Source: Coindesk