What’s the story
JPMorgan Chase, one of the largest banks in the US, has partnered with cryptocurrency exchange Coinbase.
The partnership will allow the customers to fund their wallets using their Chase credit cards and buy cryptocurrencies on the exchange starting later this year.
This is a major step toward mainstream adoption of digital assets as traditional financial institutions are now entering this space.
Chase customers will be able to redeem credit card points
The cryptocurrency market recently hit a $4 trillion valuation and is tipped to grow further with regulatory clarity in key markets like the US.
This growth is driving broader adoption of digital assets.
As part of the new deal, JPMorgan customers will be able to redeem credit card reward points for USDC, a stablecoin pegged to the US dollar, starting in 2026.
Stablecoins are expected to grow rapidly
Stablecoins are tokens that protect users from price volatility, and serve as a bridge between traditional finance and digital assets.
With the rising demand for low-cost, instant transactions, stablecoins are expected to grow rapidly across payments, trading, and emerging financial platforms.
Earlier this month, PNC also announced its deal with Coinbase to offer crypto trading services to its customers.
Coinbase’s shares rose 3%
Coinbase’s shares rose 3% in premarket trading. The company’s stock has surged nearly 50% this year, giving it a market valuation of about $95 billion.
This stellar performance has also helped Coinbase bag a spot in the benchmark S&P 500 index, marking a major milestone for the cryptocurrency industry as a whole.