Crypto exchange Gemini has denied reports that its banking relationship with U.S. banking giant JPMorgan has ended.
In a March 8 tweet, Gemini said:
“Despite reporting to the contrary, Gemini’s banking relationship remains intact with JPMorgan.”
Coindesk previously reported that JPMorgan had ended its relationship with the Winklevoss twins-led crypto exchange. The media outlet said its source was a person familiar with the situation.
According to Gemini’s website, the exchange maintains relationships with other banks, including embattled crypto-friendly bank Signature and State Street.
Gemini and JPMorgan began their business relationship in 2020. The leading bank also took rival exchange Coinbase as a client at the time.
Crypto faces banking debacle
Recently, the relationships between several crypto firms and their banking partners have been intensely scrutinized by regulators.
FTX’s collapse and the attendant regulatory scrutiny it birthed have led to several crypto-friendly banks reducing their exposure to the industry.
Signature bank initially revealed intentions to reduce its crypto exposure. In January, the bank said it would no longer process crypto transactions worth less than $100,000.
Meanwhile, another crypto-friendly bank, Silvergate, revealed a $1 billion loss in the last quarter of 2022. The bank also failed to file its annual returns with the Securities and Exchange Commission (SEC) on the due date, forcing many clients to dump it.
Since then, the bank has discontinued its Silvergate Exchange Network and is working with the US Federal Deposit Insurance Corporation to weather the current storm.
Financial regulators and lawmakers have also advised banks on the risks of crypto.
Meanwhile, the issues have not dissuaded major financial institutions from the industry. Crypto exchange Kraken has plans to launch its bank. The exchange’s chief legal officer Marco Santori said the project was “very much on track.”
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