(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)
Seeds of Wisdom
JP MORGAN TO ENABLE CLIENTS TO BUY CRYPTO WITHOUT PROVIDING CUSTODY SERVICES
JPMorgan Chase customers will soon be able to purchase cryptocurrencies through the bank, though the institution won’t hold the digital assets itself, according to an announcement from CEO Jamie Dimon. The move represents a significant shift for the banking giant, whose chief executive has previously been openly skeptical about cryptocurrencies.
“We are going to allow you to buy it,” Dimon said at the bank’s annual investor day on Monday. “We’re not going to custody it. We’re going to put it in statements for clients,” according to CNBC.
The announcement marks an evolution in Dimon’s stance, who famously described Bitcoin as “a hyped up fraud, a pet rock” in 2023. Despite his personal reservations, Dimon acknowledged client demand, stating:
“I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”
Financial institutions increasingly embracing crypto
JP Morgan’s decision follows similar moves by competitors in the financial sector.
Goldman Sachs has already ventured into cryptocurrency offerings, while Morgan Stanley recently announced plans to provide crypto services, with its subsidiary E-TRADE also exploring cryptocurrency offerings.
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The brokerage sector has shown interest as well, with Schwab backing institutional crypto trading venue EDX Markets and planning to offer crypto to investors pending regulatory changes. Meanwhile, Robinhood continues to generate significant profits from cryptocurrency trading.
JP Morgan’s decision not to provide custody services raises questions about who will safeguard clients’ digital assets. Until recently, U.S. banks were unable to provide crypto custody due to SAB 121 restrictions.
Despite being a world leader in blockchain development, JP Morgan’s choice to sidestep custody is notable given that other banks such as BNY and Standard Chartered view it as an opportunity.
Custody: Who Will Hold the Keys?
The bank will likely select a custody partner. It will need to choose between:
- Established crypto startups like Coinbase, Anchorage Digital, Paxos, BitGo, or Ripple Custody
- Institutional-founded startups such as Zodia Custody and Komainu (though these lack a strong U.S. footprint)
- Major banks such as BNY
The risk of providing custody is highlighted by the recent losses by Coinbase customers following data theft by customer support operatives that was subsequently used for social engineering.
While crypto startups bring specialized experience, traditional financial institutions like BNY offer substantially larger security budgets. However, competitive dynamics complicate matters, as BNY remains a direct JP Morgan competitor.
@ Newshounds News™
Source: Ledger Insights
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BRICS: THE BIGGEST REASON INDIA MAY EVENTUALLY LEAVE THE ALLIANCE
It has been a rather complicated few months for the leading collective of the Global South. Amid ongoing tensions for the BRICS bloc and its members, one key reason is emerging that could lead India to eventually leave the economic alliance entirely.
The country has seen no shortage of reasons to potentially see increased tensions with the group. Its conflict with China has been well documented, although it has been resolved to this point. However, in its place is a new issue that is beginning to fracture its relationship with the group.
BRICS Facing Issue that Could Eventually See India Quit the Collective
The start of the year saw US President Donald Trump once again return to the White House. That has brought with it increased geopolitical tensions, as his protectionist economic policy has threatened several global relationships.
Moreover, it is worse for the BRICS bloc, as he entered the Oval Office and threatened 150% tariffs on the economic alliance.
The reason for his confrontational relationship with the bloc remains its de-dollarization efforts. For the last several years, the bloc has sought to lessen its reliance on the greenback in a major way. Even considering the creation of its own trade currency, the plan flies in the face of Trump’s efforts to ensure the dollar’s status.
In that pursuit, the BRICS bloc may have found the one way that India could eventually leave the alliance.
@ Newshounds News™
Source: Watcher Guru
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Source: Dinar Recaps
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