JPMorgan invests in company that tracks cryptocurrencies

JPMorgan Bank has taken another step into the cryptocurrency market by investing in a company that tracks digital assets, just like other companies have done before. The new action may indicate plans to get involved in this sector, which continues to grow and attract institutional interest.

In recent years, various activities of JPMorgan have already indicated that the bank was interested in the sector. One, and arguably the most important, was the launch of its own cryptocurrency, JPMCoin.

The bank also began to rely on cryptocurrency market analysts, who often give advice on prices. For the past few days, for example, they said that Bitcoin is undervalued and could rise by 27%.

JPMorgan invests in company that tracks cryptocurrencies

The company Elliptic is one of those that has attracted attention for its solutions in the cryptocurrency market. It provides, among other things, currency analysis services for terrorist financing prevention, portfolio research and fund raising.

For example, in October 2021 Japanese giant Softbank invested in the company that tracks cryptocurrencies, as did the bank Santander and Wells Fargo.

In the new Series C investment round, the company has finally raised funds from JPMorgan, which is now showing interest in following cryptocurrencies. The $60 million round was led by Evolution Equity Partners.

According to Simone Maini, CEO of Elliptic, the cryptocurrency market has grown tremendously and has room for another 10-fold growth, making security an increasingly relevant topic for institutions interested in using digital currencies.

“As an asset class, cryptocurrencies have grown more than 10-fold in the past five years and are now worth more than $1 trillion. Additional 10x growth potential lies ahead – and will be driven by companies interested in shaping the future of finance. We are focused on enabling the opportunity to help organizations unlock the real value of cryptocurrencies.”

Trends?

It’s worth remembering that in 2021 Mastercard bought a company that tracks cryptocurrencies, Ciphertrace. With this move, that brand has positioned itself as one of those hoping to ensure hassle-free transactions with cryptocurrencies.

And the trend is for cryptocurrency tracking companies to stand out because with new sanctions enacted by the United States, it is important to know who the customers are and what countries they live in.

For example, in recent days, the US has sued a citizen after he carried out a Bitcoin transaction that was deemed illegal. In other words, with these increasing legal risks, anyone involved in cryptocurrencies will have to pay attention to their customers and companies that track transactions will be flagged.