Advertisement
Advertisement

JPMorgan ending banking relationship with crypto exchange Gemini – source

By:
Reuters
Published: Mar 8, 2023, 19:51 UTC

By Niket Nishant (Reuters) - JPMorgan Chase & Co is cutting ties with Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, according to a source familiar with the situation.

A JPMorgan logo is seen in New York City

By Niket Nishant

(Reuters) – JPMorgan Chase & Co is cutting ties with Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, according to a source familiar with the situation.

The decision comes days after Silvergate Capital Corp, one of the most influential lenders in the digital asset industry, warned of doubts over its ability to continue as a going concern, fueling a rout in the crypto markets.

In a tweet, Gemini said its relationship with the bank remains intact. JPMorgan declined to comment.

Analysts have warned of a lack of options for cryptocurrency firms looking for banking partners in the United States, after regulators cautioned banks to be on alert for any liquidity risks that could stem from their involvement with crypto clients.

Last month, the Federal Reserve, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency together said banks should have robust tools in place to monitor funds placed by crypto-asset related entities.

Major exchange FTX’s collapse spurred Silvergate’s depositors into withdrawing $8 billion from the bank in the fourth quarter, sparking a liquidity crisis at the lender.

JPMorgan’s plan was first reported by CoinDesk.

(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel and Krishna Chandra Eluri)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement