As the demand for Bitcoin surges among retail and institutional investors. Banks such as JPMorgan are feeling the pressure from Wall Street to begin accepting the leading cryptocurrency as a legitimate asset class.
Last month during a meeting with thousands of traders and sales staff around the world. JPMorgan Chase & Co. co-president Daniel Pinto said he was open-minded when asked if the company will adopt Bitcoin.
Pinto recently clarified his remarks in an interview with CNBC: “If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved,” Pinto said. “The demand isn’t there yet, but I’m sure it will be at some point.”
JPMorgan Not The Only Bank Considering Bitcoin
JPMorgan isn’t the only major bank considering adopting Bitcoin. Goldman Sachs recently hosted a private forum with the CEO of crypto firm Galaxy Digital, Mike Novogratz.
Novogratz expounded on his thesis for bitcoin, ethereum and other digital assets. As well as their macroeconomic backdrop during the 90-minute virtual event.
During Bitcoin’s earlier 2017-era boom cycle, banks including Goldman flirted with the idea of setting up dedicated crypto trading desks. However, they ultimately scrapped most of those plans because BTC was deemed too speculative and risky for bank clients.
A new narrative has since emerged, as Bitcoin is now considered a hedge against inflation of the U.S. dollar. Fueled by billionaires such as Paul Tudor Jones and Stanley Druckenmiller.
Industry insiders now say it’s only a matter of time before traditional banks get more involved with Bitcoin. Pinto cited BlackRock’s recent move of adding Bitcoin futures as proof of wider acceptance.
Other companies such as Tesla and Mastercard said they will start taking cryptocurrencies more seriously. BNY Mellon Corp additionally revealed it will begin financing Bitcoin for its clients.
With each announcement, the likelihood rises that banks decide to join the Bitcoin party. “For the large banks, the volume of client inquiry and demand at some point will break the camel’s back,” said Damien Vanderwilt, co-president of Galaxy. “Banks eventually get strong-armed into developing these products by their clients.”