The crypto exchange took to Twitter to dispel rumours of it ending its banking relationship with JPMorgan.
Gemini has announced that its banking relationship with U.S. banking giant JPMorgan remains intact, despite recent allegations.
On March 8, Reuters and CoinDesk reported that the financial conglomerate would be cutting ties with Gemini, according to a source “familiar with the situation”. Several hours after the reports went live, Gemini announced via Twitter that its banking relationship with JPMorgan “remains intact”.
The claim comes amidst an increasingly strained relationship between the US banking system with the crypto industry in the aftermath of the FTX fallout.
On March 3, Silvergate Bank – a crypto-friendly bank which reportedly borrowed $3.6 billion from the U.S. Federal Home Loan Banks System (FHLB) to mitigate a surge in withdrawals – announced it would be discontinuing its digital assets payment network. Similarly, in December 2022, Signature Bank announced it planned to reduce crypto services.
The pressure on US banks from regulators to cut ties with crypto firms was further illuminated in February, when Coinbase founder Brain Armstong spoke out against the SEC’s alleged plan to ban crypto staking services for retail customers.
Gemini’s tweet provoked a mixed response from users on crypto Twitter. Some questioned the authority of CoinDesk’s uncorroborated source, pointing out that Gemini is an approved custodian by the SEC. Others however, including the author of the original CoinDesk report, firmly stand by the rumour, with Reuters confirming the claim just hours later.
It’s worth noting that in November 2022, CoinDesk reported that FTX‘s partner firm Alameda Research held a significant portion of its assets in FTX’s native token FTT, leading to the liquidity crisis.