As the cryptocurrency boom continues on Wall Street, major names are making significant moves one after another.
At this point, Citi announced that it plans to launch a cryptocurrency custody service by 2026.
While Citi is taking things a step further with its crypto custody service, JPMorgan said that custody service is not on the table.
Speaking on CNBC's Squawk Box Europe, JPMorgan's head of global digital assets markets, Scott Lucas, said the bank plans to trade cryptocurrencies but has no plans to offer crypto custody services.
This statement came after Lucas was asked whether the banking giant would follow rivals like Citibank in storing cryptocurrencies on behalf of its clients.
JPMorgan, which is cautious about cryptocurrencies compared to its other rivals, will offer its customers the opportunity to trade cryptocurrencies, but this service will be limited.
Scott Kucas said that he will not hold his customers' cryptocurrencies directly.
At this point, Lucas emphasized that the bank is unlikely to offer custody services in the near term, but aims to offer crypto trading services.
“I think Jamie Dimon made it clear at investor day that we will be trading crypto trading services, but custody is out of the question for JPMorgan in the near term.
There are a lot of questions about our own risk appetite and how far we want to go on this path, trading-wise and otherwise. But I think custody services will follow suit over time.”
Scott Lucas recently explained that the bank is examining ways to offer new services to clients, both on the liquidity front and to respond to the demand for stablecoin transactions. “Our strategy is still being defined, as we've only had a clearer understanding of the opportunities available for a few months,” Lucas said.
*This is not investment advice.