JPMorgan to Launch Crypto Trading, Skips Custody

JPMorgan, a pillar of traditional finance, is preparing to let its clients trade cryptocurrencies such as Bitcoin (BTC), according to statements from the bank’s digital-asset leadership.

Overview

On October 13 2025, at CNBC’s Squawk Box Europe, the bank’s Global Head of Markets & Digital Assets, Scott Lucas, was asked if the banking giant would follow competitors such as Citibank into custodying crypto for its clients. In response, Lucas highlighted that JPMorgan’s involvement in crypto will begin with trading—not custody.  

He noted that during its recent investor day, CEO Jamie Dimon made it clear:

“We’re going to be involved in trading … custody is not on the table at the moment.”

Lucas added,

“I think 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.”

The move marks a shift from the bank’s historically cautious posture toward digital assets. For years, JPMorgan’s exposure to crypto has been limited, focusing mostly on blockchain infrastructure and derivative products.

He said, “

There’s a lot of questions around our own risk appetite and how far we wanna go down that path, from trading and other sides of it, and custody I guess would follow.”

With rising client demand and evolving regulatory clarity in the US, the bank appears to be cautiously stepping into the arena of direct crypto access. 

Custody Hesitation and Third-Party Custodians

While JPMorgan is embracing trading exposure, it is deliberately avoiding taking on responsibility for custody (i.e. storing clients’ crypto assets) for now.  Lucas explained that custody

“would follow,”

depending on how the bank calibrates its risk appetite and investigates potential custodial partners.

Instead of in-house custody, JPMorgan is exploring arrangements with external custodians to support the trading business.  This approach allows the bank to offer crypto-trading services while containing exposure to operational, regulatory, and security risks associated with holding digital assets itself. 

Until now, JPMorgan has also experimented with stablecoins and deposit-token prototypes like

“JPMD”

to integrate digital-asset workflows with its traditional operations. 

Broader Crypto Strategy: Loans, ETFs and Strategic Partnerships

JPMorgan’s move into crypto trading is part of a broader strategy to deepen its involvement in digital assets, but in a measured, modular way.  For example:

• The bank is planning to allow clients to use crypto-linked assets — specifically, spot BTC exchange-traded funds (ETFs) — as collateral for loans. 
• JPMorgan intends to fold crypto holdings into clients’ net worth and liquidity assessments, treating them more like other assets (e.g., stocks, real estate) in wealth management contexts. 
• The bank has inked a strategic partnership with Coinbase, allowing for bank-to-wallet account linking and enabling Chase customers to convert credit card or rewards assets into crypto, enhancing seamless access.
• JPMorgan appears committed to a dual approach, blending its traditional financial services with emerging blockchain solutions instead of focusing solely on one.

This hybrid strategy lets JPMorgan gauge traction, manage risk, and phase in capabilities (like custody or more lending) later as confidence, regulation, and execution allow.

Outlook & Risks

JPMorgan’s decision to enter client crypto trading sends a strong signal that traditional finance is gradually embracing digital assets. But the cautious stance on custody reveals the bank remains wary of regulatory, security, and capital-intensity challenges in crypto. 

The success of its effort will hinge on choosing reliable custodial partners, managing compliance burdens, and integrating crypto workflows with conventional banking infrastructure.