On May 12 a report from the Wall Street Journal highlighted that the move is the first time the banking giant has served clients from the crypto industry.
JPMorgan Chase has taken on two bitcoin exchanges, Coinbase and Gemini Trust, as banking customers, the first time it has accepted cryptocurrency clients https://t.co/NgbDpwAYEH — The Wall Street Journal (@WSJ) May 12, 2020
Both exchange accounts were reportedly accepted in April, with transactions now starting to be processed.
JPMorgan Chase is not processing Bitcoin or other cryptocurrency transactions on behalf of the exchanges but is providing cash-management services and handling dollar transactions for their U.S.-based clients.
The bank will reportedly process all wire transfers and dollar deposits and withdrawals via the Automated Clearing House network.
Both exchanges were asked to undergo a rigorous vetting process, pointing to major banks’ long-standing reluctance to forge relationships with crypto-related businesses.
In April, Gemini obtained a new security qualification, a Service Organization Control (SOC) 1 Type 1 certification, after passing a review by Big Four accounting firm Deloitte.
Coinbase Custody had, for its part, previously sealed both an SOC 1 Type 2 and a SOC 2 Type 2 evaluation by major accounting firm Grant Thornton.
Both exchanges have also satisfied the requirements to operate under NYDFS’ exacting BitLicense framework and are licensed money transmitters in multiple states.