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JP Morgan Crypto Credit Card Lawsuit Settled for $2.5 Million

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The 2018 JP Morgan crypto credit card lawsuit was recently settled by banking giants with $2.5 million in total payouts. The lawsuit filed two years ago claimed that JP Morgan Chase overcharged its customers for buying digital currencies using the bank’s credit card, categorizing purchases as cash advances.

JP Morgan Chase has opted to classify crypto purchases as “cash advances,” which are generally charged more than usual. As a result, some of the bank’s clients filed a class action suit back in 2018, which was settled back in March of this year. As part of the agreement, the banking giants will not admit any misdemeanor.

JP Morgan crypto credit card lawsuit was filed in 2018

However, according to a report by Reuters on May 28, the bank accepted to resolve the class action lawsuit by paying $2.5 million. According to one of the plaintiffs, Brady Tucker, JP Morgan breached the Truth in Lending Act; as it did not notify its clients that buying crypto using a credit card is being treated as “cash advances.” The report highlights:

“In a motion filed Tuesday in Manhattan federal court, plaintiffs said the settlement would result in class members getting about 95% of the fees they said they were unlawfully charged.”  

This classification resulted in customers being charged higher fees than usual. In his case, Tucker argues that JP Morgan declined to refund him for excessively charging him; after using his credit card to purchase digital currencies from Coinbase.

JP Morgan changes stance towards crypto

In reality, two years ago, when the lawsuit was filed, JP Morgan was unfriendly to digital currencies. The CEO of the bank, Jamie Dimon, also went on to label Bitcoin as a fraud. However, he later confessed to CNBC that he was mistaken to label Bitcoin as a fraud.

Nevertheless, it has recently been reported that JP Morgan offers banking services to two cryptocurrency exchanges, namely Coinbase and Gemini. This shows that the bank has changed its stance towards cryptocurrencies in recent times.

JP Morgan Goes bullish on Crypto as Coinbase and Gemini Create Accounts with The Bank

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Typically, the cryptocurrency industry has been viewed as an inferior sector compared to mainstream stalwarts. This feeling has caused a great deal of lag in the virtual asset environment, with banking institutions going through hard, at least until now.

Just recently, JP Morgan revealed that it was jumping into the digital asset stranglehold by offering banking services to crypto-bigwigs Coinbase and Gemini. According to official sources, the shift in sentiments of JP Morgan comes after the untapped potential of the decentralized market has been realized.

JP Morgan claimed that they will provide services such as deposits, withdrawals and transfers to both Coinbase and Gemini. Both facilities will be focused on the architecture of the Automated Clearing House [ACH], which is approved by most banking institutions. The latest move by the bank is set to prove beneficial to cryptocurrency companies as it solves one of the biggest concerns of the industry: lack of trust.

Banks have generally deferred from partnering with organizations in the virtual asset world due to rampant fears of money laundering. This has slowly dissipated with the passage of time as legitimate companies have gone through a number of regulatory hoops. JPMorgan was also interested in the sector earlier, with the bank pulling out of the planned stablecoin in 2019.

The latest venture of the bank allowed Gemini and Coinbase to become their first cryptocurrency clients. Sources close to JP Morgan added that the two exchange accounts were approved last month, with transactions already being processed. Speaking of the topic at the online portal, a major banker said:

“It’s quite significant news in my opinion. There is little business in fees associated with processing wire and ACH payments, I would expect that there are other associated benefits to JPM from any associated banking services, additional collaboration with both of those firms, potential for winning any future IPO or another angle such as JPM coin being offered on either of those platforms.”

Major bank on-board cryptocurrency companies can also act as a sign for other institutions to sit down and take note. Analysts said that if JPMorgan succeeds with Coinbase and Gemini, then it was only a matter of time before another suit followed. Some people in space found it ironic that a corporation whose CEO named Bitcoin ‘a scam’ earlier was going to make such a move.

JP Morgan CEO Jamie Dimon had previously claimed that fiat currency was the way to go, and that bitcoin was only a way for scammers to make money. Dimon stuck with his statements even though the bank was playing with the idea of a ‘JPM Coin.’ The CEO claimed that while Bitcoin was useless, its underlying blockchain technology had a huge potential.

Say what you’re going to do about growth, the cryptocurrency world will benefit greatly from the news circulation. The objective has always been to achieve credibility among the institutions, and the two exchanges would be happy to know that they were in the initial stages.

JP Morgan’s Quorum to Merge With Ethereum Based ConsenSys; Has Mainstream Finance Finally Decided to Trust Crypto?

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Mainstream companies have understood that integrating blockchain technology into their peripherals would result in added advantages in business. This was also a mantra followed by one of the world’s biggest banks, JP Morgan.

Recently, JP Morgan revealed that they were considering merging their popular Quorum blockchain unit with the ConsenSys Joseph Lubin. The news is coming in the wake of a report that indicated some troubled times for ConsenSys

Sources close to the bank stated that they were in initial talks to merge Quorum because of its functionalities and abilities to utilize blockchain. There have been no formal announcements as of yet but a concrete plan is expected to be revealed in 4-6 months.

ConsenSys is expected to be a good fit for Quorum because the latter too is based on Ethereum. Quorum is used by JP Morgan to run the Interbank Information Network which acts as a payments network for over 300 banks. There were also earlier comments that mentioned Quorum would be used to create the bank’s native crypto called JP Morgan Coin.

Ethereum’s commonality was one of the main reasons why the companies decided to merge. The bank revealed that they were planning to spin-off Quorum for another two years. Along with this, JP Morgan also has plans to set up an open-source foundation as well as creating a new startup. The spin-off idea was first suggested back in May 2019 but it was anything but concrete.

Quorum blockchain has also gone through some upgrades over the months, forcing many people to sit up and take notice. Quorum now has added privacy features from Ethereum as well as an upgrade within the Java programming language.

The news was also met with some trepidation as there was growing concern that a change in integration would affect existing projects on Quorum. People close to the initiative stated that the merger with ConsenSys would not change a thing to exiting compounds.

ConsenSys was also in the news recently when a project based on it launched its own ‘Proof-of-Use’ Network to discourage speculation. The project is titled, Activate and is part of the ConsenSys Codefi. It is an Ethereum-based operating system for decentralized finance products.

The updates from ConsenSys is expected to generate more interest from JP Morgan for the Quorum integration. Many proponents of the space see it as an opportunity to bring in more developments into the digital asset industry by involving mainstream finance.

 

Former JP Morgan Employees Aim to Solve Enterprise Blockchain Issues with Kadena

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The cryptocurrency industry has seen a remarkable turn of events, especially when it comes to developments and updates. Apart from growing in terms of partnerships and tie-ups, organizations were now changing the way they work from the inside out. 

Just recently, a new blockchain-based startup called Kadena was launched in New York to give the enterprise world access to the characteristics of a public blockchain.

This would also be done by ensuring that all transactions on the chain are treated with the privacy of a private chain.

Enterprise companies have been trying their best to enter the blockchain market because they have realized the benefits of the industry.

This ranges from increased security as well as faster transaction times. The founders of Kadena, Stuart Popejoy, and Will Martino earlier worked at JP Morgan Chase, where they were in charge of the blockchain team. According to Martino, Kadena was:

“… a scaled proof of work mainnet. The key here, with this launch, is that for the first time ever we figured out how to have a scaled proof of work network. We figured out how to shard proof of work.”

The startup has revealed that Kadena comprises of three parts: a private chain called kuro, a public chain known as chainweb and its native open-source smart contract language called Pact.

Kadena wants to fill in the void where enterprises require the functionality of a public blockchain but without its security concerns.

In most cases, a lot of companies refrain from using blockchain technology because of the fungibility factor. At present, there are a few projects seeking to connect enterprise blockchain with public blockchain networks. This includes JP Morgan’s native Quorum network which is based on Ethereum.

The roster also includes Besu, a product from Hyperledger that is supposed to be quick and user-friendly.

With Kadena, the organization plans to provide an end to end solution for all processes on the blockchain. Sources close to the company claim that they want enterprises to build applications on its private chain instead of building it from scratch.

Kadena has stated that its blockchain solution is much faster than the existing ones, even faster than Bitcoin and Ethereum settlement times. This works by the creation of a blockchain with the potential to contain several other chains.

Each chain on the chainweb has a dedicated amount of throughput that is somewhere between 10 and 100 tps.

The introduction of Kadena is also expected to boost the dApp market. As Kadena works on a single layer principle, it will have more processing power to run applications. The developers have also claimed to fic the onboarding issues that have otherwise plagued blockchain networks.

Ethereum’s Blockchain in Limelight as JP Morgan Portfolio Company Partners With Blockchain Startup

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Blockchain startups have been booming across the spectrum with many of them being headed by former mainstream players or bankers. This further sheds light on the growing dominance of the digital assets space.

To keep this surge going, Smartac, a JP Morgan portfolio company dealing in the product designation space has partnered with blockchain startup Citizens Reserve.

According to reports, Citizens Reserve is a supply chain platform built on the blockchain. This enables it to conduct transactions and process code much faster than conventional methods. The startup is slated to use its blockchain-based SUKU supply chain platform to integrate with the JP Morgan affiliate.

Addressing the latest partnership, Dinesh Dhamija, the CTO of Citizens Reserve stated:

“The combination of Smartrac’s digital enablement capabilities along with Citizen’s Reserves’ SUKU platform will provide a unique identity for each physical product with a transparent and accessible supply chain solution.”

Dhmaija also mentioned that the partnership will allow Smartac to bring its technology into the blockchain world. This is not the first time that the supply chain industry has dabbled in blockchain technology. Industries such as shipping and transportation have already taken the leap into the world of digital assets earlier.

JP Morgan had tasked Smartac with creating a more immutable ecosystem for industries such as food and the latest move is a step in that direction. The company utilizes RFID technology as well as the much-hyped Internet of Things [IoT].

With the latest partnership, Smartac will be able to use Citizens Reserve’s resources on the Ethereum blockchain. At the same time, it will also be able to tap into JP Morgan’s native Quorum blockchain.

Both the companies have clarified that utilizing blockchain technology in sectors such as the food and beverage marketplace gives it more credibility. Eric Piscini, the chief executive of Citizens Reserve added:

“RFID tags are critical when you think about supply chain and what we do, we do supply chain on blockchain, and when you need to track an item using the supply chain, whether it’s components or it’s a final product, you need RFID tags, and the partnership is really for us to be able to provide a complete solution to our clients.”

The specific RFID technology used by Smartac is aimed to solve real-world problems faced by customers. This includes increasing traceability of products, prevention of data tampering and the transport of illegal commodities. Using the Ethereum blockchain provided by Citizens Reserve, customers will be able to track physical goods from the pickup to drop point.

Piscini earlier worked in the blockchain department at Deloitte, making it one of the first mainstream companies to enter the decentralized sectors. Since his exit, the Citizens Reserve CEO has made it his mission to include blockchain tech in a variety of sectors.

He revealed that the first application will be in the meat industry and will not rest until its dominated. Citizens Reserve also has long term plans to carry this blockchain technology into several other institutionalized sectors.

 

Source: Forbes

XRP is useless to Ripple, a bitcoin maximalist and ex-VP at JP Morgan Chase

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The crypto industry is slowly but steadily gaining momentum. Mass adoption has not yet been achieved, but everything is surely pointing towards that direction. And Ripple’s XRP has played a vital role in the mission so far. But one notable personality thinks differently on this.

So, there are several cryptos with most of them currently doing well in the market. One of them and the most tongue lashed crypto is Ripple’s XRP.

XRP has recently been under severe scrutiny from a contributor on Forbes, who condemned the asset as a scam without a good use case. As if that’s not enough, now XRP has been branded as a ‘totally useless’ digital asset by him.

A Typical Maximalist Leaves No Stone Unturned

Not too long ago, Derivatives trader, YouTube personality, analyst, and crypto contrarian, Tone Vays referred to Ripple’s XRP as a ‘useless penny stock,’ and now he has gone a step further saying that XRP is just useless to Ripple (the firm behind the digital currency).

Apparently, he should be having his reasons for such comments. But first, Vays is a typical bitcoin maximalist; therefore, from that perspective, we may understand his remarks. Maybe he’s feeling the pressure behind the back that XRP is pushing over bitcoin.

According to him, XRP is useless to the parent firm Ripple, and that it can be swayed anyhow – and that the latest partnership of Ripple with MoneyGram doesn’t intimate the fact that XRP isn’t a security.

But let’s face it

First, Vays says that XRP should not have existed in the first place. Many think those allegations are the truth but look at xRapid for a moment. Take a few folks who send money across the border in an efficient way and tell them Ripple is useless.

Your guess is as good as mine; Ripple is their small paradise with reduced costs and quick transactions. That is one area it’s overtaking bitcoin, and perhaps Vays isn’t pleased about it.

Also, saying that XRP should be compared to PayPal is a big joke given that PayPal manages only to perform 193 transactions per second while XRP handles over 1,500 transactions per second. Therefore, it’s indeed unclear why he would refer to Ripple’s XRP useless or even not faster than PayPal.

Nevertheless, Tone Vays is an early bitcoin supporter, and we may not expect him to comment positively on Ripple’s XRP which is breathing on bitcoin’s neck. That said, he doesn’t need to do that, Ripple and its cryptocurrency are a completely different elephant than BTC. Bitcoin and XRP can keep growing together.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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JP Morgan is skeptic about Bitcoin value (again)

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The Wall Street elephant JP Morgan is not convinced by Bitcoin’s recent rally, and it’s issued a warning saying that the BTC price would take a dive soon.

The New York financial giant believes that the recent rally is nothing but a trap for the foolhardy that will mirror, yet again, the boom-bust cycle prevalent in the cryptocurrency’s history.

The premier digital coin faced some tough times during 2018, and even during 2019’s first quarter. Then, since last April 2nd, it’s doubled its price, which has caused a lot of optimism within the cryptosphere about a new bullish run.

Some analysts think that Bitcoin’s surge is caused to the US-China trade war, concerns over the stock market’s performance, dread about Bitcoin’s supply, and many other things. These are usually the reasons quoted by experts behind the increased demand for gold. It makes no sense to use them to explain why something is worthless.

JP Morgan’s analysts believe that the current rise is a false start. Like in December 2017 when Bitcoin’s price almost reached USD 20.000,00 only to plummet without any apparent reason.

“Over the past few days, the actual price has moved sharply over marginal cost,” JPMorgan’s people recorded in a summary that reached Bloomberg. The giant financial institution added,

 “This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

Those conclusions are based on Bitcoin’s “cost of production” as calculated by the Wall Street experts taking into account factors such as electricity costs and computing power.

JP Morgan’s hostile stance towards cryptocurrencies in general and Bitcoin, in particular, is not new. In fact, the bank has been openly skeptic, to say the least about digital assets since it first noticed them. But sometimes that skepticism has turned into attacks. Jamie Dimon, as bank’s officer, is on the record calling BTC “a fraud” in 2017. Then he went back a little by saying that he doesn’t care about it.

Ironically, the bank is launched a digital currency of its own. It went online last February, but the financial giant insists that it’s not a cryptocurrency.

What should you make of JP Morgan’s view on Bitcoin’s value? Probably nothing. The bank is just doubling down on its default posture on Bitcoin. And throwing around a few numbers about power costs and computing power doesn’t mean they’ve nailed the market’s sentiment down.

Outlook

Let’s not forget that Wall Street is populated with the geniuses that gave us all the 2008 global crisis which was so bad that it literally prompted the legendary Satoshi Nakamoto to come up with a financial instrument that would allow us all to do away with Wall Street and the world’s banks. That’s how Bitcoin came about.

Time is the ultimate test. We’re not saying that the next bullish run on the cryptocurrency market is here already. It’s still early to be sure about that, but the signs are encouraging. But even if it’s not, a new bullish market will happen sooner o later, and JP Morgan will fail to see it coming, as usual.

It’s up to you to decide if JP Morgan is right or not on this subject. But before you choose, it would be wise to review the bank’s analysts’ track record when it comes to forecasts in the cryptosphere.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

JP Morgan plans for progress as Ripple surges ahead with over 200 global clients

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Ripple just dropped a major announcement, one that is set to get the attention of its competitors surely. In its quarterly report, Ripple displayed a tremendous spike in growth and credits sound business strategies for this exciting development. The enterprise proudly announced to its customers how they were able to witness the purchase of almost 170 million worth of XRP dollars, an impressive 0.32% of all the worldwide transactions of the currency.

Impressive Growth

In the publication, Ripple took time to make reference to the performance in the last quarter, and the surge in performance was more than noticeable. This is especially true for the areas of programmatic and direct sales.

The blockchain firm went ahead to clarify that at the moment, they have been able to net over 200 customers – and they all actively make use of its packages like xRapid, xVia and, xCurrent to meet their needs. In the same report, Ripple stated in this year alone, 19 new exchanges listed XRP, thus bringing the total of the exchanges with the crypto on offer on the trading floor to almost 120.

Ripple is Recording Great Performance, But so is JP Morgan

Even though the figures coming out from the stables of Ripple show commendable growth and performance and a projection for even greater success, it must be pointed out quickly that the competition is real. On the one hand, SWIFT is dead set on the creation of its own cutting-edge platform that will run on blockchain technologies. On the other hand, there is also JP Morgan who has announced to all, its new collection of banks that have signed up to make use of its Interbank Information Network.

For those who are not aware, the Interbank Information Network is a package designed by JP Morgan, and it runs on blockchain technology as well. JP Morgan has explained that the network is recording a steady rise in growth and it is on a gradual rise to dominance of the sector.

The collection of banks that have signed up to use JP Morgan’s network is also a very impressive one – it has 198 customers from different parts of the globe, and that is not all. JP Morgan further revealed that this number is bound to increase stating that as more banks join, it will become even better in terms of performance.

JP Morgan promises a drastic reduction in delays and the resultant costs associated with transactions – the ultimate beneficiary will be the customers and clients on the network. Some of these banks are Australia and New Zealand Banking Group Limited, Bank Saint Petersburg, Bank of Nanjing, China CITIC Bank International Limited, China Guangfa Bank, Ho Chi Minh City Development Joint Stock Commercial Bank and others.

What this trend signifies that although Ripple is doing an amazing job with its growth, the contemporaries and rivals like JP Morgan are also not resting on their oars. At the end of it all, the overall winner will be the one who satisfies the needs of the customers the most.

Image courtesy of Geograph.org.uk.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

JPMorgan CEO Confirms Clients Can Buy Bitcoin, But No Custody Services Offered

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  • JPMorgan clients can now buy Bitcoin, but the bank will not provide custody services.
  • Jamie Dimon remains critical of Bitcoin even as JPMorgan expands client crypto access.
  • In Q1 2025, the company increased its investment in cryptocurrency from $1 M to $16.3M.

During JPMorgan’s 2025 Investor Day, CEO Jamie Dimon confirmed that the investment bank will now offer its clients the option to buy Bitcoin. The statement indicates that the $4 trillion asset manager is now embracing digital assets. Although Dimon maintains a skeptical stance on Bitcoin he acknowledged growing client demand and clarified that the bank will not offer custody services for the cryptocurrency.

The decision follows a period of gradual expansion in JPMorgan’s digital asset activity. Last week, the bank settled its first public transaction involving tokenized treasuries, working alongside Chainlink and Ondo Finance. This signals that organizations are paying more attention to blockchain technology because clients seek exposure to invest in cryptocurrencies.

Jamie Dimon Maintains Critical View of Bitcoin

Jamie Dimon has held a critical view of Bitcoin for several years, calling the asset a “Ponzi scheme” and “worthless” in earlier public statements. His statement reflects that he supports people’s ability to purchase Bitcoin, regardless of his decision.

He said, “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin.” Coinbase’s CEO also expressed concerns about Bitcoin’s use by criminals and questioned its actual value.

Despite his doubts, Dimon acknowledged that JPMorgan clients consistently expressed interest in digital assets. Offering customers the ability to buy Bitcoin is a significant change in the company’s previous rules. In 2017, Dimon warned employees against trading Bitcoin, even threatening termination for those who engaged with the asset.

JPMorgan Expands Blockchain and Crypto Exposure

JPMorgan’s actions in the digital asset market aren’t limited to offering Bitcoin. The company has established a large framework for using blockchain in financial products and services. 

Earlier this month, Kinexys, a JPMorgan-backed entity, completed a cross-network transaction involving tokenized treasury assets with Chainlink and Ondo Finance participation. Kinexys processes over $2 billion in transactions daily, and it aims to support more real-time settlements by increasing cross-currency payments with JPM Coin.

Meanwhile, JPMorgan’s new SEC filing revealed that the company now holds a larger portfolio of cryptocurrency exchange-traded funds. In its latest 13F filing with the U.S. Securities and Exchange Commission, JPMorgan reveals that its involvement in cryptocurrency increased early this year. The bank’s total cryptocurrency holdings now exceed $16.3 million, up from $1 million at the end of 2024. Due to increasing institutional attention, these securities allow their clients greater access to the crypto market.

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JPMorgan Chase Settles First Transaction Using Public Blockchain

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Key Takeaways:

  • JPMorgan Chase completed its first transaction on a public blockchain using Chainlink and Ondo Finance.
  • The transaction marked a shift from JPMorgan’s historically private blockchain model to a hybrid architecture.
  • Analysts view this as a foundational move that signals broader institutional adoption of decentralized infrastructure.

In a significant breakthrough for mainstream finance, JPMorgan Chase has carried out its first public blockchain settlement successfully. The key transaction used a collaborative framework between Chainlink and Ondo Finance with the settlement of the tokenized U.S. Treasuries.

The transaction saw JPMorgan make a cross-chain settlement from its bespoke blockchain environment into the public ledger of Ondo with Chainlink as the layer that authenticated and carried out the transfer.

The deal represents the first time JPMorgan, traditionally known for having a closed, permissioned blockchain network reserved for institutional clients, has officially crossed into the public blockchain arena.

It was executed by JPMorgan’s blockchain arm, Kinexys, and is taken as an indicator of the bank’s growing faith in decentralized financial technologies.

JPMorgan’s Structural Shift from Walled Gardens

Historically, the firm has developed and run its own permissioned blockchain infrastructure with a focus on security, regulation, and selectivity. The move towards linking up with a public blockchain is a thoughtful change in approach as opposed to a knee-jerk response to immediate market forces and political posturing.

It is a part of a multi-year road map for developing their settlement systems for greater applicability and interoperability, according to Nelli Zaltsman, head of platform settlement solutions at Kinexys.

The integration relied heavily on Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which enabled communication between JPMorgan’s private systems and Ondo’s tokenized asset platform.

The transaction involved purchasing blockchain-native treasury instruments, an emerging class of digital assets that mirror traditional government securities while being fully programmable and accessible via public networks.

JPMorgan’s Move Shifts Institutional Finance

Chainlink co-founder Sergey Nazarov emphasized that this was not a mere proof-of-concept, but rather the formation of a production-ready infrastructure.

Nazarov noted that the technology is poised for broader deployment and could serve as a model for future institutional-scale blockchain adoption. JPMorgan’s action as a turning moment in institutional finance.

The deal provides the groundwork for a new hybrid financial environment where public as well as private blockchain infrastructures co-exist in order to facilitate real-world asset settlement on a large scale.

The development is against the backdrop of a changing regulation in the United States, with shifting federal policy potentially further affecting institutional plans toward crypto adoption.

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