Consumer banking giant JPMorgan announced that its Chase banking customers will now be able to link Coinbase wallets with their bank accounts to allow transactions as part of a major announcement that will allow its customers to buy cryptocurrency with their bank accounts. The announcement also covered Chase Bank's credit card points, which will be transferable to Coinbase and can be used to buy the USDC stablecoin.
JPMorgan Makes Inroads In Cryptocurrency By Allowing Customers To Link Accounts With Coinbase
JPMorgan's announcement comes as its CEO Jamie Dimon continues to remain skeptical about cryptocurrency. During JPMorgan's annual investor conference in May, Dimon shared that while his bank would allow customers to buy Bitcoin, he still remained skeptical due to concerns about money laundering and ownership. Dimon likened Bitcoin to smoking, as he commented that while he wouldn't advise anyone to smoke, he'd nevertheless defend the right to do so.
In line with the CEO's comments, JPMorgan announced today that it would allow customers to link their bank accounts with Coinbase. The Coinbase integration will enable the bank's customers to buy Bitcoin and redeem their Chase credit card points to buy stablecoins.
Coinbase benefits from allowing the USDC stablecoin to trade on its platform and has a close partnership with USDC's issuer, Circle Internet Group.
JPMorgan's partnership with Coinbase will allow Chase bank credit card holders to use their cards to buy cryptocurrencies on the exchange. The other two major features of the deal, redeeming credit card points and linking Chase bank accounts with Coinbase, will be available in 2026, Coinbase outlined in a blog post.
Coinbase's shares opened 2.6% higher today on the news of the deal. Shares of Circle Internet Group, which have gained 128% since they were listed for trading in June, were 4.7% higher. Cross linking of Chase bank accounts with Coinbase marks a significant milestone in streamlining cryptocurrency due to the bank's 80 million strong customer base.
"By joining forces with Coinbase, we are enhancing the security and privacy of our customers' data, allowing them to use their money and rewards in new and exciting ways. With Ultimate Rewards, the most flexible loyalty program in the industry, our customers can now seamlessly and securely convert their points into cryptocurrencies," said JPMorgan's head of Payments and Lending Innovation, Melissa Feldsher in a prepared statement.
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