USDJPMorgan Plans Crypto Trading Expansion as Custody Remains Off the Table
Bank’s Digital Assets Chief Outlines Strategy Focused on Trading, Partnerships, and Stablecoin Innovation
TL;DR:
- JPMorgan is developing crypto trading services but will not custody digital assets directly for now.
- Executive Scott Lucas emphasized an “and” approach, combining traditional markets with blockchain innovation.
- CEO Jamie Dimon’s shift toward stablecoins and tokenized deposits reflects a broader institutional pivot in 2025.
JPMorgan is preparing to open a new chapter in digital asset trading, signaling a deeper entry into the crypto market while keeping custody services at bay for the time being. Scott Lucas, the bank’s global head of markets and digital assets, confirmed that plans for crypto trading are moving forward but clarified that the firm remains cautious about directly holding clients’ digital assets. He described the decision as a matter of risk appetite and internal policy rather than technical limitation, saying that custody “is not on the horizon near-term.”
Lucas discussed the strategy on CNBC’s Squawk Box Europe, noting that CEO Jamie Dimon’s remarks at the company’s investor day made clear the direction of travel: JPMorgan intends to participate in the trading side of crypto. Still, Lucas said the firm is assessing what “the right custodians” would look like, suggesting potential partnerships instead of direct handling. This reflects a strategic balance between innovation and regulatory caution as traditional finance institutions navigate the evolving digital landscape.
A key theme throughout Lucas’s comments was JPMorgan’s “and” approach — a philosophy of embracing both existing financial systems and emerging blockchain opportunities. He stressed that the bank is not choosing between legacy infrastructure and decentralized networks but rather pursuing both simultaneously. “There’s the existing market and there’s opportunities to do new things,” Lucas said, emphasizing that these “and” opportunities are not mutually exclusive. The statement reflects JPMorgan’s growing belief that crypto markets are now part of the broader financial ecosystem rather than an opposing force.
The bank’s expanding footprint in the crypto space has become increasingly visible in 2025. Partnerships with major players like Coinbase, as well as product development around blockchain-based settlement systems, mark a noticeable shift from the skepticism that once defined JPMorgan’s leadership. Dimon, long known for his criticism of crypto, recently described himself as a “believer in stablecoins,” recognizing their value in payments and liquidity management. His acknowledgment has added credibility to the bank’s digital asset ambitions and helped shape its next phase of adoption.
Lucas pointed to the deposit token project, JPMD, launched in pilot form on Base in June, as one of the bank’s cornerstone blockchain initiatives. The program is designed to streamline institutional transactions and settlement processes while complementing stablecoin use cases. “There’s a real opportunity for us to offer different services for our clients on the cash side, as well as responding to client demand to do things like stablecoins,” Lucas explained, noting that recent regulatory clarity has accelerated the firm’s development efforts. The combination of deposit tokens and stablecoin-linked offerings highlights JPMorgan’s intent to capture liquidity across multiple digital rails while keeping compliance front and center.
The conversation also touched on the broader structure of the blockchain industry, where Lucas dismissed the notion of a single dominant network. He argued that the future of decentralized finance will likely be multi-chain, with new layer-1 blockchains emerging alongside established ones like Ethereum. “We’re seeing a bunch of new layer 1s being rolled out,” he said, suggesting that competition, rather than consolidation, will define the next phase of blockchain evolution. Lucas confirmed that JPMorgan plans to expand activity across public blockchain ecosystems “in the coming quarters,” signaling that the firm’s crypto price index exposure could soon grow alongside its traditional trading operations.
As traditional finance and digital assets continue to converge, JPMorgan’s measured expansion underscores a pragmatic institutional strategy — one that seeks to scale trading activity without overextending into direct custody risks. For a firm long associated with skepticism toward crypto, the shift marks a calculated, metrics-driven step toward capturing the coin market cap momentum that has drawn competitors like Citibank and Goldman Sachs deeper into blockchain finance. The world’s largest banks are no longer sitting out the crypto race; they’re redefining it from the inside.
This article has been refined and enhanced by ChatGPT.
