JPMorgan and Coinbase will link bank cards to cryptocurrency wallets. Why is this important?

JPMorgan and cryptocurrency exchange Coinbase have entered into a partnership that will allow more than 80 million customers of the largest US bank to link accounts and cards with cryptocurrency wallets. Starting as early as this fall, they will be able to fund cryptocurrency wallets via their bank cards, and from 2026, they will be able to link accounts to them and even convert reward points into stablecoins. The move could be a turning point in the way big banks are letting customers into the world of cryptocurrencies.

JPMorgan and Coinbase announced a partnership that will operate in two phases. Starting in the fall of 2025, about 80 million bank customers will be able to fund cryptocurrency wallets with Chase credit cards, and from 2026 it will be possible to directly link a bank account to an account on the Coinbase platform to fund them with cryptocurrency. Also in the second phase, Chase cardholders will be able to exchange the reward points on them for USDC - a stablecoin pegged to the U.S. dollar.

This collaboration demonstrates the growing confidence of large financial institutions in providing regulated access to crypto services, notes Benzinga. 

Coinbase shares rose 2.5% in trading on July 30. Since the beginning of the year, the company's value has increased by more than 50%, reaching about $95 billion, which provided it a place in the S&P 500 index, an important milestone for the industry, noted Reuters.

Quotes of JPMorgan added 0.8% on Wednesday. 

Direct interaction between crypto services and banks will allow fintech companies to do without intermediary data aggregators such as Plaid, MX Technologies or Akoya, which have traditionally acted as a link, explains Bloomberg. This will give businesses the opportunity to save on commissions. A Coinbase spokesperson clarified that the exchange plans to retain all existing links with aggregators, and the direct connection to JPMorgan accounts will be an additional channel. Moreover, it is still unclear whether all companies - especially small ones - will be able to agree on such work, writes Bloomberg. 

In comments to the agency, JPMorgan said the bank is open to establishing direct connections and that it has a "team that is actively working on this." Previously, management -and primarily JPMorgan CEO Jamie Dimon-had taken a cautious stance on the cryptocurrency sector.

In early July, PNC Bank announced that it was working with Coinbase to offer cryptocurrency trading services for its customers.

This article was AI-translated and verified by a human editor