JPMorgan to Allow Customers Buy Bitcoin Despite BTC Custody Plans Dismissal

Investment bank JPMorgan Chase has announced that it will now let clients buy Bitcoin, although it will not provide custody services for the asset following the CEO’s skepticism about the cryptocurrency.

Notably, the institution recently concluded its inaugural publicly disclosed transaction involving tokenized treasuries, a venture that involved collaborations with Chainlink and Ondo Finance.

However, JPMorgan’s offering of Bitcoin services doesn’t seem to have changed Dimon’s personal doubts about cryptocurrency.

“We are going to allow you to buy it, we are not going to custody it. We’re going to put it in statements for clients,” Jamie Dimon noted at the bank’s annual investor day on Monday.

JPMorgan’s Stance on Bitcoin

Earlier in the year, the JPMorgan executive characterized Bitcoin as a “Ponzi scheme” devoid of intrinsic value, reiterating his long-held reservations about the asset. Dimon has consistently maintained this critical stance, even as his institution endeavors to meet client demand for Bitcoin-related services. During a public address, he reiterated his personal aversion to Bitcoin.

“I don’t know what Bitcoin itself is for, but I defend your right to smoke a cigarette. I’ll defend your right to buy Bitcoin. I won’t personally ever buy Bitcoin,” Jamie Dimon states in 2024.

JPMorgan is broadening its cryptocurrency services to include Bitcoin purchases; however, the institution clarified that it will not hold Bitcoin on behalf of its clients. This approach allows them to satisfy client demand for Bitcoin while limiting their exposure to cryptocurrencies.

JPMorgan seems to be trying to give customers access to Bitcoin while being careful about how much it commits to digital currencies. The bank is finding a compromise by letting people trade Bitcoin but not holding it for them. It recognizes what’s happening in the market but avoids some risks of holding digital money.

Nonetheless, this move lets the bank join the growing digital asset world while keeping its leaders’ worries about Bitcoin’s true worth in mind.

Strategy Increases Bitcoin Holdings

In contrast to Dimon’s skepticism, Strategy announced another big purchase of Bitcoin. This time, the company bought 7,390 BTC, tightening its position as the largest financial holder of the apex coin.

According to a statement, the recent purchase cost about $764.9 million, as each coin was bought for about $103,498. As of May 18, the company held 576,230 BTC worth about $40.18 billion, acquired for $69,726 per coin.

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