ChainCatcher message, according to CoinDesk, the Office of the Comptroller of the Currency (OCC) recently issued an explanatory letter confirming that national banks can participate in "risk-free principal" cryptocurrency trading, allowing banks to act as intermediaries for cryptocurrency transactions without holding inventory or taking on market risk.
According to Bloomberg, JPMorgan is exploring providing cryptocurrency trading services for institutional investors, marking a shift for Wall Street banks from the experimental stage of cryptocurrency to the implementation stage. Experts believe this regulatory change will have a significant impact on the cryptocurrency market. With the advantages of regulatory legitimacy and customer trust, banks are expected to capture a considerable share of retail order flow, particularly putting competitive pressure on independent cryptocurrency exchanges that do not have banking licenses.
The bank is expected to focus on high liquidity assets such as Bitcoin, Ethereum, and regulated stablecoins, rather than offering all cryptocurrency tokens. Market observers point out that this competitive landscape may not be a zero-sum game, as many banks will still rely on crypto-native companies to provide liquidity, pricing, and infrastructure, creating opportunities for collaboration.
