Daniel Pinto, co-president and COO of multinational investment bank JP Morgan, confirmed to CNBC that if and other cryptocurrencies become widespread, the bank will have no choice but to get involved with them.
“If and when [cryptocurrencies] become a broadly-used asset class, [JP Morgan] will have no choice but to become involved. The demand from clients isn’t there yet, but I’m sure it will be at some point,” Pinto told CNBC’s Hugh Son.
The correspondent explained that big banks have been very reluctant so far to get involved with Bitcoin because it is considered too speculative. However, JP Morgan’s own traders have been looking at Bitcoin charts and “truly salivating at the volatility and the surge of this” lately, which became evident at the recent semi-annual “town hall” meeting at the bank.
“There was a semi-annual town hall meeting last month where $JPM had to grapple with demand coming within from their own traders people who are actually looking at charts of #btc truly salivating at the volatility and the surge of this,” says @Hugh_Son. pic.twitter.com/TE3CwTBhVl
— Squawk Box (@SquawkCNBC) February 12, 2021
Son also noted that while he has been asking JP Morgan about Bitcoin on a regular basis, he was “really surprised this year by the difference in tone.” When specifically asked about regulation, Pinto reportedly said that JP Morgan’s counterparties are big institutions that are already cleared in terms of know-your-customer procedures.
Additionally, Pinto said that when JP Morgan will finally decide to get into Bitcoin, it will use crypto exchanges the bank is “comfortable with,” specifically namedropping Coinbase.