JPMorgan ending banking relationship with crypto exchange Gemini – source

JPMorgan ending banking relationship with crypto exchange Gemini - source
© Reuters. FILE PHOTO: FILE PHOTO: A JPMorgan logo is seen in New York City, U.S., January 10, 2017. REUTERS/Stephanie Keith/

By Niket Nishant

(Reuters) – JPMorgan Chase & Co (NYSE:JPM) is cutting ties with Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, according to a source familiar with the situation.

The decision comes days after Silvergate Capital (NYSE:SI) Corp, one of the most influential lenders in the digital asset industry, warned of doubts over its ability to continue as a going concern, fueling a rout in the crypto markets.

In a tweet, Gemini said its relationship with the bank remains intact. JPMorgan declined to comment.

Analysts have warned of a lack of options for cryptocurrency firms looking for banking partners in the United States, after regulators cautioned banks to be on alert for any liquidity risks that could stem from their involvement with crypto clients.

Last month, the Federal Reserve, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency together said banks should have robust tools in place to monitor funds placed by crypto-asset related entities.

Major exchange FTX’s collapse spurred Silvergate’s depositors into withdrawing $8 billion from the bank in the fourth quarter, sparking a liquidity crisis at the lender.

JPMorgan’s plan was first reported by CoinDesk.

Source: Reuters