Crypto exchanges and other cryptocurrency companies are finding it increasingly hard to find partners among established financial institutions. According to Reuters, JPMorgan Chase & Co is in the process of cutting ties with crypto exchange Gemini and intends to end the banking relationship between the two sides.
JPMorgan opened itself to crypto firms in 2020, looking to get on the crypto bandwagon, and took on Gemini alongside publicly-traded crypto exchange Coinbase as its clients. However, frequent crashes crypto market and endless controversies surrounding it have seemingly prompted the U.S. banking powerhouse to reassess its commitment.
As it currently stands, the Gemini situation won’t affect Coinbase, and the company will remain a JPMorgan client, according to its spokesperson.
Gemini, on the other hand, issued a tweet shortly after the report became public, refuting the rumors and saying its “banking relationship remains intact with JPMorgan.”
Gemini was founded in 2013 by twin brothers and Olympic rowers Tyler and Cameron Winklevoss. The crypto exchange currently operates in the U.S., Canada, the UK, South Korea, Hong Kong, and Singapore. It has partnered with other banks like State Street, so it won’t have trouble continuing its operation. However, customers’ confidence will definitely take a hit in case JPMorgan exit turns out to be true.