JPMorgan in Search of Crypto Clearinghouse

by in Cryptocurrency News

JPMorgan crypto clearinghouse

Wall Street financial services provider JPMorgan views possibilities of cooperation with a crypto clearinghouse to form liquidity.

Related: MicroStrategy continues to buy bitcoins

The news was announced by Forbes on March 15.

Commonly shoppers of crypto assets need to store their capital with over-the-counter (OTC) or off-exchange desks before purchasing. This is risky for users and at the same time makes decentralized dealers take obligation for crypto custody.

Crypto clearinghouses act as mediators between the parties in finance. They secure the implementation of the deal and add liquidity to the network.

The representative of JPMorgan told that there is a need for crypto clearinghouses, so the situation like the one of the trading application RobinHood won't repeat.

Note that in February Robinhood had to suspend customers from acquiring stocks like GameStop for some time as a result of cash circulation matters. JPMorgan's spokesman believes that the cooperation with a clearinghouse will motivate banks to transfer their liquidity to crypto.

Meanwhile, cryptocurrencies continue to attract major investors. On March 13, Bitcoin price surpassed $60.000. At the moment the coin trades at around $55.500 with a market cap of over $1 trillion.