Crypto’s bank-like turn puts JPMorgan on edge

The recent convergence between banks and crypto firms is accelerating, especially with yield-bearing stablecoins, ETF filings, and tokenized markets testing the boundaries of financial regulation. This shift suggests potential impacts of cryptocurrencies on traditional banking practices, introducing new risk factors into the financial system. Many banks have started to engage with cryptocurrencies, being accepted as a mainstream asset class, yet this could heighten scrutiny from financial regulators. Major financial institutions like JPMorgan are adopting a cautious approach, keeping a close eye on future market trends and regulatory responses.