Takis Georgakopoulos, head of the payments division at JPMorgan investment bank, said that customer demand for cryptocurrencies has plummeted over the past six months.
In an interview with Bloomberg Television, Takis Georgakopoulos said that six months ago there was a lot of interest in digital assets among the bank’s clients, and now it is noticeably fading. However, the bank will continue to support account holders using crypto assets, Georgakopoulos said.
Most likely, this situation is connected with the fall of the cryptocurrency market, which dragged on for several months. More than $2 trillion has disappeared from the market, and now its total capitalization is about $937 billion. Well-known companies working with digital assets are on the verge of bankruptcy. So, in July, crypto lenders Celsius and Voyager Digital filed for bankruptcy due to lack of liquidity.
However, Georgakopoulos is optimistic about tokenized assets. JPMorgan recently became one of the key sponsors of London-based cryptocurrency startup Ownera, and in May, the banking giant began testing a blockchain for collateral settlement.
Georgakopoulos noted that cryptocurrencies are becoming more and more popular in the gaming industry. The Web3 sector and the metaverse are of particular interest to the bank, so JPMorgan is hiring professionals who will promote the bank’s products in virtual reality.
At the end of August, JPMorgan investment strategist David Kelly advised investors to focus on stocks and long-term bonds instead of cryptocurrencies until the economy stabilizes.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
