Former head of J.P. Morgan’s blockchain division says major banks could get into the cryptocurrency business sooner than you think.
“I think it’s coming sooner than people probably think,” Amber Baldet, Former head of J.P. Morgan’s blockchain arm said in an interview with CNBC on Friday. “But even where the will is, the legal and regulatory framework is challenging,” she added.
Despite registering record profits from bitcoin’s 1,300% increase last year, most banks remained skeptical and stayed away. However, Goldman Sachs is reportedly pushing with its plans to set up the first bitcoin trading operation at Wall Street.
However, custody remains the biggest challenge yet, according to Baldet. Financial institutions currently have few ways of safeguarding a company’s digital assets, although several solutions were revealed this week.
On Wednesday, Nomura Holdings, a Japan-based global investment bank, revealed a venture to establish a custody offering. Coinbase, on the other hand, also announced a series of new offerings including a custody solution on Monday.
Ever since Baldet announced her departure from bank in April, rumors about her post J.P Morgan plans have been the topic of speculation in the industry. The former blockchain division head unveiled her new startup Clovyr on Wednesday at the Consensus Blockchain Conference. Clovyr offers something similar to the app store but for projects that are based on blockchain technology.
“There’s no way to discover what’s out there right now, there’s no Google for finding applications,” Baldet said. “The ability to discover apps is helpful but the ability to build them is also encompassed in there,” she added.
Baldet is included in Fortune’s 40 under 40 list of influential young people in business.