Bakkt and JP Morgan are Reportedly Partnering to Offer Crypto On-Ramp Starting in November

Is Bakkt Partnering with JP Morgan for Crypto Services?

Global investment bank JP Morgan has reportedly agreed to partner with crypto startup Bakkt. Starting in November, Bakkt will handle crypto onboarding for the Wall Street giant.

That report comes from The ICO Journal, which cites “two staffers” at JP Morgan who were willing to share the information.

The sources claim that JP Morgan will partner with Bakkt to create a crypto trading desk. This would allow JP Morgan clients to purchase crypto through their ordinary account interface.

“We spoke to two staffers at the firms’ global headquarters who have been working on the relationship between Bakkt and JP Morgan. Let’s just say they didn’t disappoint and their comments just may represent how every global investment bank is planning to engage with Bakkt.”

JP Morgan, of course, is the famously anti-bitcoin financial giant. Last year, JP Morgan CEO Jamie Dimon made headlines for criticizing bitcoin, although he later stepped back from his comments calling bitcoin a scam.

The ICO Journal has a history of reporting news from anonymous sources. Earlier this month, The ICO Journal claimed to have multiple sources at the SEC or closely involved with the SEC. The ICO Journal reported that bitcoin ETF approval was a 99% certainty based on information from those sources. We might have to wait until February for a decision on that bitcoin ETF to determine whether or not The ICO Journal’s sources were correct.

In this latest situation, The ICO Journal’s sources claim that Bakkt and JP Morgan will have a close partnership as Bakkt prepares to launch its crypto on-ramp this November. That crypto on-ramp will cater to both retail and institutional investors, making it easier for anyone to securely participate in the crypto industry.

The ICO Journal’s first source has reportedly worked at JP Morgan for more than ten years. Here’s what that source had to say about the firm’s partnership with Bakkt:

“Bakkt provides a clear and clean regulatory construct to engage with Bitcoin. No smoke and mirrors. No regulatory risk. No outsized legal risk. Our compliance and legal team have done a deep dive on Bakkt and our integration/execution protocols. It all works and it all works better than what we expected. The custody solution is the real story there and is ultimately what has provided us the bandwidth (legally) to offer options to clients. If I was forced to disclose where we are headed, take a look at the products that Goldman has become comfortable with and that is what we seem to be comfortable with at this time. Not confirming any product or offering, but I can speculate that we will have a trading desk and that clients will be able to access Bitcoin, via Bakkt, in some way shape or form.”

A second source, meanwhile, is a relatively new employee at JP Morgan, joining the company in late 2017. Here’s what that second source had to say:

“There are two digital asset teams internally and the focus has been on what Bakkt has proposed and how to adequately leverage it for institutional clients. I think we are a long way from offering anything to retail clients. That would clearly be in direct competition to Jamie’s (Dimon) public statements. But Bakkt offers an easy pathway to offer institutional clients access that gives us legal and risk comfort. My very educated guess is that we offer trading capabilities within our commodities and forex space that includes Bitcoin via Bakkt. Given that all of the legal and compliance due diligence is all but done, we should see volumes begin and increase here (with respect to Bitcoin trading) as Bakkt ramps up. Where products and services go in the digital asset space from there will take on a life of its own. You can imagine that we aren’t necessarily considered ‘first movers’ in banking. But that’s because we don’t have to be. Still, our leadership likes Bakkt and are comfortable with what they are set to bring to market.”

Bakkt is one of the biggest crypto news stories of the year. Launched this past summer, Bakkt is owned by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. The startup is also backed by Microsoft, Starbucks, and other American corporate giants. In November, Bakkt plans to launch a crypto platform that will allow retail and institutional investors to easily enter the crypto space.

A quick Google Search for Bakkt will also show that they’re connected to plenty of other financial giants. Starting in November, Bakkt could offer its crypto onramp services to some of Wall Street’s biggest firms – including JP Morgan and others.

It’s no secret that there are billions of dollars of institutional funds waiting on the sidelines to enter crypto. These funds have been waiting for a safe, regulated way to participate in the industry. Bakkt plans to cater to hedge funds, institutional investors, and high net worth individuals who have waited for an easy way to participate.

November is the Beginning of the Next Stage of Crypto

The ICO Journal concludes its report by stating that Bakkt’s launch in November will be “the beginning of the next leg up in crypto.”

JP Morgan and its CEO Jamie Dimon have been famously anti-bitcoin since last year. However, JP Morgan appears to have quietly arranged a partnership with Bakkt to offer crypto services to clients – at least if you believe The ICO Journal’s sources.

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