- The largest bank in the United States is reportedly opening up services for Coinbase and Gemini cryptocurrency exchanges as the bank’s customers.
- In a statement from “someone familiar with the matter”, the bank will provide only fiat transaction services and will not in any way handle crypto transactions.
JP Morgan adds Coinbase and Gemini as customers
One of Wall Street’s largest banking facilities, JP Morgan, is finally accepting crypto customers according to a post by WSJ. The bank is set to provide cash management services to U.S. customers on Coinbase and Gemini cryptocurrency exchanges according to an unnamed source. The post reads,
“It will process wire transfers, and deposits and withdrawals through the Automated Clearing House network, an electronic funds-transfer system.”
The latest move by the largest U.S. bank opens up a gateway for other banks and services to offer fiat services to regulated crypto exchanges. Such businesses have faced a barrier from the banks, which remain skeptical of the cryptocurrencies like Bitcoin and Ethereum and the role they play in money laundering.
The calls to open up banking systems to lawful cryptocurrency users were further elaborated by Brian Brooks, a senior deputy at the Office of the Comptroller of the Currency during the Consensus Distributed event on Monday. Brooks, a former Coinbase legal head, said,
“As crypto matures, there are increasingly many companies that have perfectly robust risk management systems and do have an ability to comply with those laws, and they shouldn't have trouble finding bank relationships.”
Coinbase and Gemini regulatory road to freedom
It is no miracle that these two exchanges – Coinbase and Gemini – became the first in the crypto space to deal directly with JP Morgan. The two have acquired numerous operational licenses from key financial authorities across the U.S. giving them much-needed credibility to open an account with the top bank.
Under the leadership of the Winklevoss twins, Tyler & Cameron, the Gemini crypto exchange has taken a heavily regulated approach in Gemini’s growth. In 2015, the exchange acquired its trust charter from the New York State Department of Financial Services (NYDFS) and recently announced the Service Organization Control (SOC) 1 Type 1 certification which upholds its security certifications.
Coinbase leads the U.S. crypto exchange field having registered as a money transmitting platform on the Financial Crimes Enforcement Network (FinCEN) and also gaining its BitLicense back in 2014.