JPMorgan Sees Dip In Demand For Crypto Services
Despite the low interest in the crypto market right now, the banking giant has proclaimed that it will continue providing crypto services.
‘Very Little Demand’ For Crypto Payments
According to the Global Head of Payments at JPMorgan Chase & Co., Takis Georgakopoulos, the public’s interest in cryptocurrencies as a payment channel has dropped significantly over the last six months. However, he has claimed that despite the downturn in demand, the bank will continue providing these services as usual.
In an interview with Bloomberg on Tuesday, Georgakopoulos said,
“We saw a lot of demand for our clients, let’s say up until six months ago. We see very little right now but the bank will still support clients who want to use that method.
Crypto Winter Not Deterring VCs
The ongoing crypto winter has been the worst market downturn seen in recent years. The market lost over $2 trillion in less than a year and many exchanges saw a steady drop in trading volumes. A major reason behind the trading drop off is the market crash, which took down many investors, lending protocols, and other related crypto entities. The Terra LUNA debacle especially took down multiple companies and lost billions of dollars of investor funds. Where 2021 had been an exceptionally good year for crypto, with many coins hitting dazzling all-time highs, 2022 has seen a serious drop off of interest among individual investors. However, institutional interest has somewhat been able to bear through the crypto winter. Venture capital funds are interested more than ever in the market, with a record amount of funds being invested in crypto projects in the year.
JPMorgan’s Web3 Moves
According to Georgakopoulos, the role of crypto in the gaming sector is increasing continuously. Be it traditional video games or the newer crop of blockchain-powered metaverse games, the role of cryptocurrencies and NFTs are becoming more and more invaluable to this sector. JPMorgan is backing many such tokenized assets that has proliferated in the gaming space. For example, the institution has pledged its support to the London-based digital asset startup Ownera. It has also made moves in the Metaverse by opening the Onyx lounge in the Decentraland virtual platform. The organization is even looking to expand its team by hiring new personnel and manager for its Web3.0, Crypto, Fintech, and Metaverse division. Additionally, in May the company launched the pilot to employ blockchain technology for collateral settlement.