United States Banking giant, JPMorgan Chase, has linked up with Coinbase to directly link customers’ bank accounts to crypto wallets starting next year. This move is facilitated to lower barriers for mainstream access to digital currencies. Additionally, the two firms agreed to launch a feature that will allow customers to fund their wallets using JPMorgan’s credit card and buy digital assets on the Coinbase exchange.
Customers will also be able to convert Chase rewards points into digital currencies. This move highlights the growing intersection between traditional finance and cryptocurrency, as digital assets continue to gain traction among consumers, investors alike, and large banks.
JPMorgan Deepens Its Ties with Cryptocurrency
Traditional finance institutions continue to penetrate the crypto space, an ecosystem that they were once wary of. Now that digital assets have gained enough traction among consumers and investors, large financial institutions have decided to encroach on the industry. JPMorgan’s landmark partnership with Coinbase will allow direct bank-to-wallet transactions, eliminating third parties like Plaid.
Fintech firms relied on third-party aggregators like Plaid to facilitate bank-to-wallet transactions. This model was risky, as it increased integration instability and screen scraping. JPMorgan’s partnership with Coinbase eliminates those risks, as its API-driven setup allows for authentication and KYC within the regulated bank environment.
Additionally, Chase cardholders will be able to convert their points to crypto at the ratio of 100 points to $1 USDC via the credit-card reward program in 2026. Furthermore, they will be able to use the Chase credit card to buy digital currencies on Coinbase come this Fall, further simplifying the art of crypto purchase.
Impact of the Collaboration
Collaborating with Coinbase unlocks crypto access to over 80 million+ Chase customers. It makes the bank-to-wallet transactions a reality, where users fund their Coinbase wallets directly from their credit cards. Transactions are now seamless and straightforward, which will lower barriers to entry in the future.
Besides, JPMorgan’s custom API allows the embedding of ID verification, ensuring stricter transaction monitoring and compliance. By enabling strict oversight, the bank mitigates fraud and money laundering activities, reducing overall risk.
Both institutions will gain increased visibility and brand legitimacy. For instance, JPMorgan will be seen as an innovator and institution embracing crypto amid evolving regulations. Coinbase, on the other hand, will gain broader legitimacy for aligning with the largest bank in the United States. Funding crypto directly with USDC via the rewards program also validates stablecoin use, cementing the role of dollar-pegged coins in everyday banking.
Will Banks and Crypto Firms Continue to Tango?
Absolutely! We will witness more integrations between large banks and crypto firms. Fintech firms, such as MoneyGram and PayPal, have already implemented stablecoin payments, with the latter even launching its own PUSD. Other large U.S. banks, such as Citigroup and Morgan Stanley, are already exploring similar crypto integrations.
Global remittance giant Western Union is exploring stablecoin use in digital wallets and plans to build on/off ramps. JPMorgan has also held discussions with Bank of America, Citigroup, and Wells Fargo to create a stablecoin. These developments come after the passage of the GENIUS Act into law.
What’s Next for JPMorgan?
JPMorgan Chase is deepening its ties with cryptocurrency with several partnerships made and initiatives launched since the start of 2025. The latest partnership with Coinbase marks a significant moment in bridging traditional finance with cryptocurrencies. With direct access to crypto via bank accounts and credit cards, JPMorgan is positioning itself to onboard even more customers into crypto.
The bank is currently considering offering loans backed by customer-held crypto assets like Bitcoin and Ethereum, possibly starting as early as next year. Reports circulating from the financial space reveal that the US’s largest bank could use clients’ crypto holdings as leverage for loans.
Crypto is not just accessible; it has gone mainstream. Large banks like JPMorgan are making sure of that. It’s acting as a leader in traditional finance and a crypto innovator.
