Pressure to adopt bitcoin intensifies on Wall Street
The world’s leading investment bank JP Morgan has revealed plans to trade bitcoin.
JP Morgan is the latest major player to back the cryptocurrency by saying it is looking at trading bitcoin “at some point” in the future.
Daniel Pinto, co-president of JP Morgan told CNBC on Friday that the investment bank’s decision on whether to provide bitcoin services would depend on its clients’ desire to trade the digital currency.
“If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved,” Pinto said.
“The demand isn’t there yet but I’m sure it will be at some point.”
The announcement came as a result of pressure from the Wall Street bank’s staff.
Last month, global markets head Troy Rohrbaugh acknowledged an enquiry about the company’s approach towards bitcoin by employees during a town hall meeting.
JP Morgan follows other major institutions in sounding out positions in bitcoin, as well as those that have made firmer moves.
Just this month Goldman Sachs invited Mike Novogratz, chief executive of crypto company Galaxy Digital, to host a private forum for its staff members.
As other large companies, including Mastercard and Visa, outlined plans to involve bitcoin in their respective operations, it appears Wall Street is feeling the pressure to get involved now sooner rather than later.
Tesla also said it would allocate $1.5bn of its cash holdings into bitcoin, as well as accepting payments.
From just under $30,000 at the end of 2020, bitcoin soared to nearly $50,000 this week, as major players make moves into the space.
Investment bank JP Morgan has recently revealed a long-term price target of $146,000 for bitcoin.