For years, major banks treated cryptocurrency primarily as a risk to be contained. That posture is now giving way to a more deliberate form of engagement. Rather than debating crypto’s legitimacy, banks are increasingly deciding how and where to integrate it—ranging from regulated investment products to blockchain-based payment rails.
This shift is on full display in this week’s Crypto Biz.
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### JPM Coin Heads to the Canton Network
JPMorgan is extending its US dollar deposit token, JPM Coin (JPMD), onto new blockchain infrastructure, signaling that tokenized cash is moving closer to production use within global banking.
JPMorgan announced plans to issue JPM Coin natively on the Canton Network, marking another step by Wall Street toward production-ready blockchain infrastructure. Digital Asset, the developer of the Canton Network, and Kinexys by JPMorgan will extend JPM Coin from its existing rails onto Canton’s privacy-focused layer-1 blockchain. This upgrade enables regulated digital cash to move securely and efficiently across interoperable networks.
JPM Coin, described as the first bank-issued, US dollar-denominated deposit token for institutional clients, represents a digital claim on JPMorgan’s dollar deposits. It is designed to facilitate faster, more secure movement of regulated money on public blockchains.
“This collaboration brings to life the vision of regulated digital cash that can move at the speed of markets,” said Yuval Rooz, co-founder and CEO of Digital Asset.
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### Morgan Stanley Enters the Crypto ETF Race
US investment bank Morgan Stanley is entering the cryptocurrency exchange-traded fund (ETF) market, filing with the US Securities and Exchange Commission to launch two new funds: the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust.
These investment vehicles aim to provide passive exposure to the performance of Bitcoin (BTC) and Solana (SOL). If approved, the funds could become available to more than 19 million clients within Morgan Stanley’s wealth management division, significantly expanding access to crypto-linked investment products.
Spot Bitcoin ETFs have ranked among the most successful ETF launches on record, attracting substantial inflows during their first two years of trading. Momentum has continued into the new year, driven by renewed investor demand.
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### Barclays Invests in Stablecoin Infrastructure
London-based banking giant Barclays has made its first investment in a stablecoin-focused company, signaling traditional finance’s growing interest in digital dollar infrastructure.
Barclays announced an undisclosed investment in Ubyx, a US-based stablecoin clearing platform that connects regulated issuers with financial institutions to facilitate settlement and interoperability.
This move marks a notable shift for Barclays, which in recent years publicly emphasized the risks associated with digital assets. “This investment aligns with Barclays’ approach to explore opportunities based on new forms of digital money, such as stablecoins,” the bank stated.
Ubyx has previously raised $10 million in seed funding, backed by Galaxy and Coinbase. The company was founded by Tony McLaughlin, a former Citibank executive.
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### Bank of America Wealth Advisers Cleared to Recommend Bitcoin ETFs
US investors may soon receive recommendations to buy Bitcoin ETFs from Bank of America’s private bank and Merrill Edge platforms, adding to evidence of Bitcoin’s growing integration into traditional finance.
The bank’s chief investment office has approved coverage of four US spot Bitcoin ETFs, including products offered by Bitwise, Fidelity, BlackRock, and Grayscale. Collectively, these funds manage more than $100 billion in Bitcoin assets.
This move follows Bank of America’s recent advice to wealth management clients to allocate 1% to 4% of their portfolios to digital assets.
“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate,” said Chris Hyzy, Chief Investment Officer at Bank of America Private Bank.
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Together, these moves suggest that the banking sector is no longer content to watch from the sidelines. Instead, major financial institutions are taking concrete steps toward integrating cryptocurrency and blockchain technologies into their core offerings.
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https://bitcoinethereumnews.com/tech/wall-street-moves-onchain-as-banks-embrace-digital-assets/