JPMorgan is ramping up efforts to expand its footprint in the blockchain and cryptocurrency markets. The company’s global head of markets and digital assets, Scott Lucas, has confirmed that plans are underway to introduce cryptocurrency trading services.

Currently, the bank is not considering direct custody of cryptocurrencies. In a recent appearance on CNBC’s Squawk Box Europe, Lucas addressed whether JPMorgan would follow in the footsteps of competitors like Citibank in offering crypto custody services, stating that it is not a near-term focus. However, he highlighted the bank’s intention to engage in cryptocurrency trading.

“I think Jamie [Dimon] was pretty clear on investor day that we’re going to be involved in the trading of that, but custody is not on the table at the moment,” Lucas explained.

He elaborated that the bank is actively searching for appropriate custodians for the future.

JPMorgan’s Multifaceted Crypto Strategy

Lucas underscored the bank’s “and” approach to crypto, indicating that JPMorgan aims to embrace a range of opportunities in the sector rather than narrowing down to a single focus.

“I think when it comes to how we approach this, we’re very much taking an ‘and’ approach. There’s the existing market and there’s opportunities to do new things. And those ‘and’ opportunities aren’t exclusive to one or the other,” he emphasized.

The bank has been slowly shifting towards a broader stance on crypto and blockchain, forming partnerships with prominent firms like Coinbase as a notable advancement.

This transformation may reflect a change in attitude from CEO Jamie Dimon, who, after previously criticizing the crypto industry, has acknowledged the potential of stablecoins and the value of blockchain technology.

Lucas remarked on JPMorgan’s deposit token, JPMD, which is currently piloting on the Base platform, expressing enthusiasm over its capability to cater to institutional clientele and recognizing the growing interest in stablecoins.

“So when it comes to JPMD, I think it’s really exciting, there’s a real opportunity for us to think about how we can offer different services for our clients on the cash side. As well as responding to client demand to do things like stablecoins,” he added.

Looking toward the future, Lucas believes that multiple blockchain networks will thrive, rather than a single one dominating the entire market, emphasizing that opportunities abound for JPMorgan to engage further in this evolving landscape.