JP Morgan began offering banking services on US cryptocurrencies

JPMorgan Chase, the largest bank in the United States, reportedly accepted Coinbase and Gemini cryptocurrencies as customers.

A May 12 report by the Wall Street Journal quoted unnamed sources, apparently familiar with the issue, who stressed that the move marks the first time the banking giant has served customers in the crypto field.

Both exchanges were reportedly accepted in April, and transactions are already being processed, WSJ sources said.

JPMorgan Chase does not process Bitcoin (BTC) or other cryptocurrency transactions on behalf of exchanges, but provides money management and dollar transaction processing services to their US-based customers. The Bank will process all bank transfers and deposits in dollars and withdrawals through the network of the automated clearing house.

Coinbase and Gemini have gone through special regulatory requirements

Sources say both exchanges have been asked to go through a rigorous vetting process, underscoring the long-standing reluctance of large banks to build links with cryptocurrency businesses.

This April, Gemini received a new Security Qualification, a Service Organization Control Certificate (SOC) 1 type 1, after being reviewed by the accounting firm Big Four Deloitte.

For its part, Coinbase Custody has previously secured both SOC 1 Type 2 and SOC 2 Type 2 ratings from chief accountant Grant Thornton.

Coinbase is registered as a monetary services business with FinCEN, and in 2015 Gemini received a license from the Ministry of Financial Services in New York.

Both exchanges also meet the requirements to operate in the strict BitLicense framework of NYDFS and are licensed money transmitters in many countries.

Jamie Dimon of JPMorgan is a vocal critic of Bitcoin

For those who have followed the position of JPMorgan Chairman and CEO Jamie Dimon to the crypto space in recent years, the news of the bank’s support for the change of the two exchanges may come as a surprise.

Among his spicy statements, Dimon said Bitcoin was ‘worse than tulips’, predicting that speculation on the coin ‘would not end well’.

However, the bank is positive about the potential of the blockchain and announced plans to issue its own digital currency focused on settlement – JPM Coin – in mid-February 2019.

The bank recently announced that it is considering merging its internal blockchain block Quorum – which is the basis of the Interbank Information Network – with the well-known company ConsenSys.