US-based major bank JPMorgan Chase will reportedly be offering its services to crypto exchange heavyweights Coinbase and Gemini, marking the bank’s first clients from the crypto sector.
The US bank is reportedly not providing facilitating support for Bitcoin (BTC) or other crypto-based transactions on behalf of the exchanges, but will be offering cash-management features, as well as taking care of dollar transactions. All wire transfers and dollar deposits and withdrawals will be processed using the Automated Clearing House network.
Both exchange firms have reportedly gone through a significantly thorough vetting protocol, due to the long-existence hesitation from major banks to work with businesses from the crypto sector.
Coinbase and Gemini have reportedly been widely recognized as crypto exchange firms with a high compliance level of regulation, with Gemini acquiring a new security qualification – Service Organization Control (SOC) 1 Type 1 certification – following a review with Deloitte.
Coinbase Custody has reportedly passed an evaluation round conducted by major accounting firm Grant Thornton, consequently obtaining both a SOC 1 Type 2 and a SOC 2 Type 2.
Both exchange platforms have also met all conditions to normally function under NYDFS’ exacting BitLicense framework, and as a money transmitter with proper licensing across numerous states.