The largest U.S. bank by assets, JP Morgan, is exploring the possibility of offering crypto trading services to large institutional investors. The move reflects growing demand from hedge funds and pension managers seeking regulated and secure access to digital asset markets.

According to Bloomberg, JPMorgan Chase is evaluating whether it should provide cryptocurrency spot and derivatives trading for institutional clients. The bank is reportedly assessing which products would allow it to expand its footprint in the crypto asset market, without yet committing to a specific launch timeline.

If implemented, the move would position JP Morgan as one of the most prominent traditional financial institutions to enter crypto trading for major clients. The final decision will depend on client demand, risk assessments, and whether the bank identifies sustainable long-term business opportunities in the sector.

Institutional demand drives the strategy

JP Morgan’s considerations come as institutional investors increasingly look for compliant and regulated ways to trade digital assets. Hedge funds and pension managers often avoid retail-focused platforms due to concerns around custody, compliance, liquidity, and trade execution.

Instead, these investors require robust infrastructure capable of handling large volumes, providing deep liquidity, and meeting institutional-grade regulatory standards — an area where large banks see potential to step in.

Tokenized fund on Blockchain

Alongside its trading ambitions, JP Morgan recently announced plans to launch its own money market fund on Blockchain. The product, called MONY (My OnChain Net Yield), will be a tokenized fund allowing investors to hold digital tokens representing ownership.

According to The Wall Street Journal, JP Morgan plans to seed the fund with $100 million of its own capital before opening it to external investors. Assets in tokenized form, crypto executives argue, can be transferred more efficiently and traded continuously.

The MONY fund will be available to qualified investors, including individuals with at least $5 million in investable assets and institutions with a minimum of $25 million. The minimum investment will be set at $1 million.

The bank will use the Ethereum Blockchain to record MONY transactions. JP Morgan’s initial $100 million investment represents just 0.0025% of the roughly $4 trillion in assets managed by the bank, highlighting the experimental but strategic nature of the initiative.

Sources:

https://www.bloomberg.com/news/articles/2025-12-22/jpmorgan-is-exploring-crypto-trading-for-institutional-clients?srnd=homepage-americas

https://www.reuters.com/business/finance/jpmorgan-exploring-crypto-trading-institutional-clients-bloomberg-news-reports-2025-12-22/

https://www.coindesk.com/business/2025/12/22/jpmorgan-weighs-crypto-trading-for-institutions-amid-growing-demand

https://www.wsj.com/finance/investing/jpmorgan-steps-further-into-crypto-with-tokenized-money-fund-e3535f13