JPMorgan Mulls Entering Crypto Trading Business: What Does This Mean?

Earlier this month, when the Office of the Comptroller of the Currency ("OCC") issued new guidance allowing banks to act as crypto brokers, it was only a matter of time before big lenders moved in to tap the opportunity. Now, according to a CoinDesk report citing Bloomberg, JPMorgan JPM, the largest U.S. bank, is considering offering cryptocurrency trading services (including spot and derivatives trading) to its institutional clients.  

With Wall Street’s appetite for digital assets growing, driven by investors seeking diversification and new sources of yield, institutional products such as Bitcoin ETFs are expected to gain traction. At the same time, an evolving regulatory framework is lowering barriers for banks to offer crypto services within established compliance structures. Against this backdrop, JPM’s probable shift is notable, given its leadership’s past public skepticism toward Bitcoin, which underscores a broader change in institutional attitudes.

If banks, including JPMorgan, offer crypto trading, it could bring significant new liquidity to crypto markets, especially for large trades, which means tighter spreads and potentially lower volatility for certain assets. The presence of bank-grade execution and risk controls could also attract more institutional capital. 

Any concrete move to launch crypto trading services will hinge on whether JPMorgan identifies sufficient client demand for specific products. The company is also carefully weighing the potential revenue opportunities against risk considerations, including market volatility, operational complexity and capital requirements, while evaluating what is permissible under the evolving regulatory framework.

Competition Intensifying in the Crypto Trading Business

JPMorgan’s potential entry would significantly raise the competitive stakes. As a globally systemic bank with deep client relationships, balance sheet strength and established trading and risk-management expertise, the bank could attract meaningful institutional crypto volumes. 

At present, Coinbase Prime, part of the Coinbase Global COIN platform, remains a leading institutional platform that provides crypto trading, while Bullish, Kraken Institutional, Fidelity Digital Assets and Galaxy Digital continue to expand their offerings. At the same time, traditional banks, including PNC Financial PNC and Morgan Stanley MS, are moving in. 

PNC Financial became the first major U.S. bank to enable direct Bitcoin trading for its clients. In partnership with Coinbase Global, PNC Financial has introduced direct spot Bitcoin trading capabilities for eligible PNC Private Bank clients. 

Moreover, Morgan Stanley has reportedly collaborated with Zerohash, a cryptocurrency infrastructure provider, enabling E*TRADE clients to trade in popular cryptocurrencies starting in the first half of 2026. Morgan Stanley will initially offer trading in Bitcoin, Ethereum and Solana.

JPMorgan’s Price Performance, Valuation and Estimates

JPMorgan’s shares have gained 14.7% over the past six months.

Six-Month Price Performance
 

From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.27X, above the industry average.

P/TB Ratio
 

The Zacks Consensus Estimate for JPMorgan’s 2025 earnings implies a 2.9% rise on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 3.5%. In the past seven days, earnings estimates for 2025 have moved upward, while those for 2026 have been revised lower.

Earnings Estimates Trend
 

JPM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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