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 BusinessJPMorgan’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 EstimatesJPMorgan’s shares have gained 14.7% over the past six months.Six-Month Price Performance Image Source: Zacks Investment ResearchFrom 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 Image Source: Zacks Investment ResearchThe 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 Image Source: Zacks Investment ResearchJPM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks