JPMorgan Chase With It’s JPM ShitCoin Wants To Take On Bitcoin (#GotBitcoin?)
Payments is an extremely buzzy corner of the financial sector right now, and JPMorgan Chase wants to dominate it, Credit Suisse analyst Susan Roth Katzke told clients Friday following a meeting with the bank’s management. JPMorgan Chase With It’s JPM ShitCoin Wants To Take On Bitcoin (#GotBitcoin?)
The back story. JPMorgan stock (ticker: JPM) is up almost 14% so far this year, just behind the S&P 500 index’s gain of 14.4%. The bank is the largest is the U.S. by assets and is looking to use that position to build a bigger, more profitable payments unit.
In January, it combined the formerly separate business units that handled consumer-to-merchant payments and corporate transactions into a new wholesale-payments operation.
In February, the bank rolled out a prototype of a digital coin that will be tested out in transactions with institutional clients.
What’s new. Roth Katzke met with Takis Georgakopoulos, the global head of that new wholesale-payments group, and concluded that the bank’s “management has made it a strategic priority to dominate all aspects, both consumer and corporate.”
Payments, she said, is a business where scale is very important, noting that JPMorgan is making progress on that front with its integration of internal platforms—a process that is now more than halfway done. Additionally, she points out that business lines like Treasury Services are a fragmented market and that the bank can gain from consolidation.
Looking ahead. With revenue growth of between 4% and 5% and a high return on equity, Roth Katze says, JPMorgan’s wholesale payments business is “both strategically important and financially sound.”