The largest bank in the United States is in the process of providing its customers with a service related to cryptocurrencies. The news was promulgated on Twitter, after JPMorgan unveiled a series of specific documents, necessary for a "cryptocurrency exposure basket", with special references to Bitcoin.
In the documents published on the official website of the SEC, 11 reference titles are listed. Mainly Fintech initiatives that have recently adopted the possibility of providing services related to cryptocurrency have ended up in the basket. Microstrategy, PayPal, Square, Riot and CME Group, among others.
In the piece published on the SEC's website, you will find the definition of listed companies, all of which have ties to digital assets.
"A basket consisting of 11 benchmark stocks of companies listed in the United States and operating assets that we believe are directly or indirectly related to cryptocurrencies or other digital assets, including holdings in Bitcoin, technology products related to cryptocurrencies, cryptocurrency mining products , digital payments or bitcoin exchange ”, it reads.
JPMorgan wants to make room for new whales in leading digital assets
Essentially, JPMorgan seeks to introduce existing clients to cryptocurrencies, through exposure, through partnership with shares of public companies that already own cryptocurrencies or are affiliated with digital assets in other ways.
It was necessary to mention that the assets involved are subject to constant volatility, and the bank has made it known in a separate paragraph, highlighting that: "The basket can be subject to extreme price volatility and rapid and substantial reductions of the price over the term of the securities. Despite the name of the basket, direct exposure to two cryptocurrencies is not offered and the performance of the basket may not be correlated with the price of a particular cryptocurrency, such as Bitcoin ”.
The largest holders of Fintech cryptocurrencies are at the top of the list
Microstrategy is on the list and that's not surprising when you consider the company's Bitcoin stake that totals over $ 1 billion. Its CEO, an outspoken Bitcoin advocate, has already reiterated that the company intends to remain in the market for the long term. Like Microstrategy, Square is equally committed to making Bitcoin a key asset to its company's services.
The payment firm confirmed the acquisition of Bitcoin worth $ 170 million, increasing its holdings to 5%. The investment is already paying off Square's strategy, as it has already registered 1 million users they have bought Bitcoin on its platform in January.
For JPMorgan, the new development is emerging soon after the US bank warned that traditional financial firms could be left behind, while digital finance takes center stage, to become a global favorite in the Fintech sector.
Certainly, JPMorgan's influence as the largest bank in the country could play the role of a reminder to its counterparts to diversify and increase their digital asset portfolios in the short term.