JPMorgan Eyes Crypto Trading Expansion but Rules Out Custody Services For Now

JPMorgan Chase is preparing to scale up its exposure to digital assets by developing cryptocurrency trading services, according to Scott Lucas, the bank’s global head of markets and digital assets. However, Lucas made it clear that direct crypto custody — holding clients’ digital assets — is not part of the company’s immediate plans.

Speaking on CNBC’s Squawk Box Europe, Lucas addressed whether the Wall Street giant would follow peers like Citibank, which already offers crypto custody solutions. “It’s not on the horizon near-term,” he said, emphasizing instead the bank’s focus on trading services. “Jamie [Dimon] was pretty clear on investor day that we’re going to be involved in the trading of that, but custody is not on the table at the moment.”

He added that JPMorgan is still considering “what the right custodians would look like” should it eventually enter that part of the market, noting that the bank must carefully assess risk appetite and regulatory alignment before moving further into crypto.

A Broader Strategy Shift

Lucas described the firm’s current direction as an “and approach” — combining traditional financial services with new digital asset opportunities, rather than choosing between them. “There’s the existing market, and there are opportunities to do new things. Those ‘and’ opportunities aren’t exclusive to one or the other,” he explained.

This perspective reflects JPMorgan’s broader evolution in 2025, as the bank becomes increasingly active in blockchain-related ventures. Recent partnerships with Coinbase and other major crypto players underscore this shift.

The change in tone has been influenced in part by CEO Jamie Dimon, who has historically been one of crypto’s most vocal critics. Dimon, who once called Bitcoin a “fraud,” softened his stance earlier this year, saying he had become a “believer in stablecoins” and recognized blockchain’s long-term value.

JPMorgan Exploring Stablecoins and Deposit Tokens

Lucas highlighted the progress of JPMD, JPMorgan’s deposit token currently being piloted on Base, a Layer-2 network built by Coinbase. The token is designed to facilitate faster institutional payments and settlement.

“So when it comes to JPMD, I think it’s really exciting,” Lucas said. “There’s a real opportunity for us to think about how we can offer different services for our clients on the cash side, as well as responding to client demand to do things like stablecoins.”

While Lucas believes blockchain adoption won’t be dominated by a single network like Ethereum, he sees multiple ecosystems evolving in parallel — and multiple opportunities for JPMorgan to participate.