Bitcoin Gets Nod from JPMorgan but Dimon Refuses to Custody It

This move is a major shift for Dimon, who is well known as a long-time crypto critic, and brings JPMorgan in line with competitors like Morgan Stanley. Meanwhile, corporate interest in Bitcoin continues to rise as Canadian biotech firm Quantum Biopharma increased its crypto holdings to $4.5 million and plans to stake assets for additional yield. In Asia, Basel Medical also plans to acquire $1 billion in Bitcoin. Separately, Chinese printer company Procolored is facing backlash for distributing malware-infected drivers that stole almost $1 million in Bitcoin. JPMorgan to Open Bitcoin Access to Clients Jamie Dimon, the CEO of JPMorgan Chase, announced a shift in the bank’s stance toward Bitcoin. Speaking at JPMorgan’s annual investor day on May 19, Dimon revealed that the bank will soon allow its clients to buy Bitcoin, although it will not offer custody services for the cryptocurrency. Instead, JPMorgan plans to include Bitcoin holdings in client statements without directly managing or storing the asset. “We are going to allow you to buy it,” Dimon said. “We’re not going to custody it. We’re going to put it in statements for clients.” According to a CNBC report , JPMorgan intends to offer clients access to spot Bitcoin exchange-traded funds (ETFs), which gained a lot of traction in the US since their launch in January of 2024. These products have already attracted close to $42 billion in aggregate inflows, indicating a strong appetite among investors. Until now, JPMorgan’s crypto exposure was largely limited to futures-based products rather than direct investments in Bitcoin. Dimon’s comments also still reflected his skepticism toward cryptocurrencies. He reiterated his concerns about their potential use in illicit activities like money laundering, sex trafficking, and terrorism. However, he framed his support for client access in libertarian terms: “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy Bitcoin.” This marks a big turn for Dimon, who has been one of the most vocal critics of Bitcoin over the years. In 2018, he called Bitcoin a scam , and in 2021, he said it was “worthless” during the height of the crypto bull market. During a 2023 Senate hearing, he characterized cryptocurrencies as primarily serving criminals and tax evaders. At the 2024 World Economic Forum in Davos, even after Bitcoin crossed the $100,000 milestone, Dimon dismissed it as a “pet rock” that “does nothing.” Jamie Dimon Despite his personal misgivings, JPMorgan’s decision to offer access to spot Bitcoin ETFs aligns it with rivals like Morgan Stanley, which has also started offering the product to select clients. Quantum Biopharma Boosts Bitcoin Holdings Canadian biotechnology firm Quantum Biopharma also recently increased its exposure to digital assets by purchasing an additional $1 million worth of Bitcoin and other cryptocurrencies. The acquisition brings the company’s total crypto holdings to approximately $4.5 million, according to a press release that was issued on May 19. In line with a growing trend among corporations, Quantum announced it plans to stake part of its crypto holdings to generate additional revenue. The company sees its treasury strategy as a way to deliver returns to shareholders while also providing a hedge against the volatility of the Canadian dollar. Quantum’s stock price increase over the past 5 days (Source: Google Finance ) After the announcement, shares of Quantum’s stock surged by around 25%, according to data from Google Finance . This suggests that investors responded positively to the firm’s deeper involvement in the cryptocurrency market, which is increasingly considered as a strategic financial move by companies beyond the tech and finance sectors. Quantum is part of a wave of healthcare and biotech companies integrating Bitcoin into their corporate treasuries. Earlier in March, NASDAQ-listed Atai Life Sciences revealed plans to invest $5 million into Bitcoin. Atai founder Christian Angermayer has been a very vocal supporter of the strategy, and said in a post on X that Bitcoin should be included in every corporate treasury—particularly in the biotech industry. He argued that crypto assets can help firms endure the long and uncertain timelines that are associated with drug development by offering a buffer against inflation and potential liquidity issues. More recently, on May 16, Singapore-based Basel Medical Group announced plans to acquire $1 billion worth of Bitcoin as part of its strategy to boost expansion across Asia. Basel said that the Bitcoin reserves would help build one of the strongest balance sheets among healthcare providers in the region, although its share price fell on the news. Corporate treasuries collectively hold over $83 billion in Bitcoin, according to BitcoinTreasuries.NET . Publicly traded companies now represent the largest institutional holders of Bitcoin, second only to exchange-traded funds. Company Caught Distributing Bitcoin-Stealing Malware In other Bitcoin-related news, Chinese printer manufacturer Procolored is under fire after reports emerged that it distributed Bitcoin-stealing malware alongside its official printer drivers. According to a May 19 article by Chinese media outlet Landian News , the Shenzhen-based company uploaded infected drivers to cloud storage platforms, making them globally accessible for download. The malware was reportedly embedded in USB drivers used for Procolored printers, which ended up compromising unsuspecting users’ systems. The security breach reportedly led to the theft of 9.3 Bitcoin, valued at over $953,000. Cybersecurity firm Slow Mist offered a breakdown of just how the malware functions in a detailed post on X , and explained that it manipulates the system clipboard to replace copied Bitcoin addresses with those belonging to the attacker. This kind of malware is particularly dangerous as it remains stealthy and can redirect funds without user awareness at the moment of transaction. The initial warning was issued by YouTuber Cameron Coward , who discovered the malware while reviewing a Procolored UV printer. His antivirus software flagged the driver as being infected with a worm and a Trojan virus identified as Foxif. After Procolored dismissed the antivirus detection as a false positive, Coward escalated the matter to Reddit . This drew the attention of cybersecurity professionals, including those at G-Data. Procolored printers After an in-depth analysis, G-Data confirmed that the Procolored drivers contained two major forms of malware: Win32.Backdoor.XRedRAT.A and a sophisticated clipboard hijacker. These files, some of which had been hosted on the file-sharing platform MEGA since as early as October of 2023, were found to be capable of opening remote backdoors and executing commands from attackers. When contacted, Procolored claimed the malware was the result of a supply chain compromise. The company said infected USB devices unintentionally introduced the malicious software, which was then uploaded to their official driver distribution channel. According to the firm, the compromised files were removed on May 8 and all available drivers were re-scanned for safety.