Milestone of Crypto Assets Exchange Collaboration with Traditional Banks

Recently, American financial giant JPMorgan has taken an important step into the crypto world. According to reports, the bank will provide banking services for two well-known crypto assets exchanges, marking a new height in the relationship between traditional financial institutions and the crypto industry.

JPMorgan has approved the opening of bank accounts for these two exchanges and will provide cash management services for its U.S. clients during the initial phase of cooperation, including wire transfers and deposit and withdrawal services. It is worth noting that JPMorgan will not directly participate in the clearing and settlement of Crypto Assets.

This collaboration is viewed by industry insiders as an important milestone for the crypto assets world to gain mainstream recognition. A banking insider stated that, in addition to direct revenue considerations, this move may also bring other opportunities for JPMorgan, such as underwriting the IPOs of these exchanges in the future and potentially listing its own digital coin on these platforms.

A senior regulatory official commented: "As the Crypto Assets market matures, more and more blockchain companies have developed good risk control systems and compliance levels. These companies should not be hindered in accessing banking services."

This cooperation is undoubtedly the result of both parties being "in tune with each other." JPMorgan hopes to lay out its plans in emerging fields as soon as possible under compliance requirements; meanwhile, these two exchanges need the support of traditional financial institutions in order to become more specialized financial service platforms and pave the way for entering a broader institutional market.

The common characteristic of these two exchanges is high compliance and primarily fiat settlement, which aligns closely with the regulatory requirements of the banking industry. They have both undergone audits by well-known accounting firms and have made significant investments in compliance. In terms of capital flow, fiat currencies dominate on these platforms, providing banks with considerable profit potential.

However, looking at the development history of the encryption industry, cooperation with traditional banks has not been smooth sailing. Many crypto enterprises have experienced setbacks in their partnerships with banks. Even leading exchanges in the industry have been forced to change their banking partners or delist certain crypto assets due to compliance issues.

Some controversial crypto assets companies, such as a well-known stablecoin issuer and its associated exchange, have had a dramatic relationship with banks. They have had contacts with several mainstream banks, but all collaborations were interrupted. The experiences of these companies reflect the complex and subtle relationship between the crypto world and traditional financial institutions.

Nevertheless, certain crypto enterprises still maintain a strong position in the industry. For example, a well-known stablecoin, with a market capitalization of approximately 9 billion USD and a daily trading volume of 59 billion USD, firmly holds the third position in global Crypto Assets market capitalization and the first position in trading volume.

This situation may signal a division in the crypto world: native institutions striving to align with the mainstream have a chance to successfully "land" and compete alongside financial giants; while other enterprises may continue to develop freely within the crypto world, their long-term development prospects remain to be seen.