JPMorgan’s Hard Pivot: Crypto Trading Plans Without Custody, For Now

JPMorgan crypto trading is moving ahead, while crypto custody is not on the near-term horizon.

Scott Lucas, JPMorgan’s global head of markets and digital assets, said on CNBC’s Squawk Box Europe that the bank is building crypto trading services.

He added that custody “is not on the table at the moment.” He cited the bank’s risk appetite and internal limits as reasons for the sequencing.

JPMorgan Crypto Trading Plans: What Scott Lucas Said

Scott Lucas confirmed active work on JPMorgan crypto trading, referencing Jamie Dimon’s investor-day remarks about participating in trading.

“I think Jamie was pretty clear on investor day that we’re going to be involved in the trading of that,”

Lucas said. He drew a clean line on crypto custody, adding, “Custody is not on the table at the moment.”

Lucas said JPMorgan is assessing “the right custodians.” He explained that the team is deciding how far to go on trading and post-trade workflows under current controls.

The focus remains on execution first, while custody undergoes review across risk, operations, and oversight.

This structure separates trading risk from custody risk. JPMorgan crypto trading can operate within existing markets controls, connectivity, and surveillance.

By contrast, crypto custody raises capital, audit, and cybersecurity requirements that need additional work before any direct safekeeping role.

Crypto Custody at JPMorgan: Why “Not Yet” Matters

Crypto custody imposes operational, legal, and capital duties beyond execution. Banks evaluate wallet security, key management, access governance, and incident response before holding assets.

As a result, JPMorgan is weighing external custodians instead of running custody itself at this stage.

Lucas said the bank is exploring providers and standards to support clients who need settlement or safekeeping.

That review includes tech stacks, access policies, segregation controls, and control testing. He framed the effort as due diligence, not delay, given the regulatory and risk topics involved.

For clients, JPMorgan crypto trading can proceed now while crypto custody relies on qualified partners.

The model aligns with bank risk frameworks and current rules on digital-asset safekeeping. It allows trading access under bank oversight while custody questions move through a structured evaluation.

Jamie Dimon, Stablecoins, and JPMorgan’s “And” Approach

Jamie Dimon shifted tone in August, describing himself as a “believer in stablecoins” and noting the utility of blockchain in financial plumbing.

That stance supports JPMorgan crypto trading and tokenized cash pilots that meet compliance and control needs. It also signals internal room for work on digital money rails.

Lucas described an “and” approach to the market. “There’s the existing market and there’s opportunities to do new things,” he said.

The bank plans to address both tracks—legacy infrastructure and tokenized finance—based on client demand and internal controls.

This and approach keeps room for stablecoins, the JPMD deposit token, and public blockchains.

It avoids an either-or posture and matches client use cases across settlement, payments, and trading. In practice, teams can build trading flow while evaluating tokenized cash options.

JPMD Deposit Token on Base: How JPMorgan Frames It

JPMD, the JPMorgan deposit token, launched in a pilot on Base in June. Lucas said JPMD targets institutional cash use cases on programmable rails with bank-grade compliance around them.

The design aims to pair deposit claims with faster, more transparent movement under existing oversight.

Lucas added that the bank watches stablecoins alongside JPMD to respond to client requests.

“So when it comes to JPMD, I think it’s really exciting,” he said, noting parallel interest in stablecoins from institutions. The dual track positions the bank across deposit tokens and established stablecoin rails.

He pointed to recent clear regulation shaping the opportunity. He said it has only been a few months since rules clarified parts of the space.

That timing guides JPMorgan crypto trading and product design, ensuring alignment with policy and control standards as offerings expand.

Public Blockchains: Multi-Network Strategy, Not One Chain

Lucas said JPMorgan does not expect a single Layer-1 to dominate public activity. He noted both consolidation and a wave of new Layer-1 launches.

This view supports a multi-network plan for public blockchains, where use cases and liquidity vary by chain.

He said the bank sees opportunity on public blockchains and expects to be “doing things in that space in the coming quarters.”

That phrasing covers connectivity builds, limited pilots, or selective venue access that meet the bank’s risk and compliance criteria. It aligns with client requests for access without endorsing any single network.

A multi-network strategy maps to client segmentation and control needs. Liquidity depth, compliance tooling, and integration paths differ across chains.

JPMorgan crypto trading can route to where clients transact while applying bank policies to onboarding and monitoring.

Institutional Context: Partnerships, Demand, and Controls

Industry surveys, including State Street work on allocations by 2028, indicate rising institutional interest in digital assets.

That backdrop supports JPMorgan crypto trading without direct crypto custody in the near term, since trading can operate under existing controls while custodians are vetted.

The approach keeps options open as the firm tests providers, policies, and control standards.

In 2025, JPMorgan engaged with firms like Coinbase to improve connectivity, execution, and post-trade workflows.

These links help align JPMorgan crypto trading with established infrastructure and reduce integration friction for institutional clients. They also offer tested routes for settlement and reporting within bank risk frameworks.

The near-term path remains operational and clear. Advance JPMorgan crypto trading under bank controls and surveillance to meet client demand.

Evaluate crypto custody through external partners and internal policies to address capital, audit, and cybersecurity requirements before any direct safekeeping role.