Bitcoin and cryptocurrency interest among Wall Street banks has exploded in recent months—climbing along with the surging bitcoin price.
However, the bitcoin and cryptocurrency market remains relatively immature, with traders having to deposit funds with over-the-counter (OTC) trading desks and exchanges before they can make a trade—adding risk for traders and forcing OTC desks to shoulder the responsibility of cryptocurrency custody.
Now, Wall Street giant JPMorgan, after ramping up its cryptocurrency services over the last year, is exploring bitcoin and cryptocurrency clearinghouse options, looking for a middleman to sit between OTC desks and traders to guarantee the enforcement of trade and create liquidity in the market.
