JPMorgan is looking at Bitcoin and Crypto Clearinghouse options amid a horrific price rally

by

Interest in Bitcoin and cryptocurrency among Wall Street banks has exploded in recent months – climbing along with the surcoin price of bitcoin.

However, the bitcoin and cryptocurrency market remains relatively unconventional, with traders having to invest money with trading and exchange desks (OTCs) before they can trade – endangering traders and forcing OTC desks to take responsibility for cryptocurrency capture.

Now, Wall Street giant JPMorgan, after ramping up its cryptocurrency services over the past year, is exploring bitcoin and cryptocurrency clearinghouse options, looking for a middle ground between OTC desks and traders to guarantee trade and create liquidity in the market. .

MORE FROM FORBESWall Street software has not been eaten yet. But Ethereum And DeFi could be all about itRo Billy Bambrough

“We basically need a crypto cleanup to see that liquidity,” says JPMorgan chief

JPM
 action, discussing background. “As soon as that happens, banks will transfer their liquidity to it.”

Cleaning houses, designed to sit between trades to make sure they pay if either money goes against a party, to ensure that trade desks are able to handle orders.

“Cryptocurrency brokers and exchanges need to avoid the kind of liquidity problems in Robinhood’s trading app,” adds JPMorgan executive. Last month, Robinhood had to suspend users for a period of time. from buying meme stocks called GameStop

GME
 as a result of cash flow issues.

A JPMorgan spokesman declined to comment when asked about the bank’s cryptocurrency clearing plans.

“All the banks that start bitcoin and cryptocurrency trading desks, none of them have a clearing house behind them,” said Rob Rosenthal, chief executive of the Revolution Populi blockchain project and former Goldman Sachs

GS
 a veteran who is primarily involved in cleaning houses, talking on the phone.

Earlier this month, Goldman Sachs said it would replace its bitcoin and cryptocurrency trading desk after a three-year hiatus, reviving support for bitcoin futures trading.

Populi Revolution, which is currently looking to raise money to build a blockchain-based real-time cleanup, recently added JPMorgan managing director Gary Chan to his team as a “cleaning house consultant. “

.Source