Crypto exchanges welcome traditional bank relationships

Relationships between cryptocurrency institutions and traditional banks will bolster crypto’s legitimacy, market participants predict.

“It appears the reputable, blue chip coins finally have a hard-won place in the mainstream. Institutional grade exchanges finally being accepted into the old boys’ club will do wonders for public perception of credibility of crypto,” said Katharine Wooller, managing director, UK and Ireland for crypto exchange Dacxi in an email, speaking on the news that JP Morgan will open bank accounts to crypto exchanges Coinbase and Gemini.

JP Morgan will provide cash management services to exchanges, similar to its relationships with corporates, the Wall Street Journal reported on May 12. The bank and Gemini declined to comment on the matter, and Coinbase did not respond in time of publication.

According to Wooller, traditional financial institutions are having to rethink their historically disparaging stances on cryptos and…