The news: JPMorgan Chase and Coinbase partnered to offer Chase's customers new ways to access crypto.

This fall, customers will be able to link Coinbase directly to their bank accounts, buy crypto with Chase credit cards, and convert rewards points to USDC, per a press release.

Why this matters: This partnership is a big step toward bridging the gap between traditional finance and crypto. By letting customers use their credit cards to buy crypto or redeem their Chase Ultimate Rewards points for USDC, the companies could accelerate crypto adoption.

It’s also another salvo from JPMorgan against data aggregators and open banking firms after the bank announced that it would charge these companies to access customer data—particularly around payments. JPMorgan is integrating directly with Coinbase rather than using APIs from a company like Plaid.

Payments impacts: Letting customers transfer their Ultimate Rewards points to USDC signals a turning point for incumbent banks’ credit card rewards flexibility. And while Chase emphasized the benefits of blockchain-enabled security and privacy, the partnership could open consumers up to overleveraging risks if consumers take on credit card debt to buy USDC that they then use to buy more volatile cryptos like Bitcoin.

Within JPMorgan’s Q2 earnings call, Jamie Dimon emphasized his personal misgivings about stablecoin—“I don't know why you'd want a stablecoin as opposed to just payment”—but also acknowledged the need to compete in the space. Partnering with Coinbase is a measured first step in consumer-facing crypto services that could help Chase avoid complete disintermediation by failing to innovate.

Banking impacts: This could be a customer acquisition game-changer for both companies. Working with JPMorgan introduces crypto to a massive, mainstream user base through a trusted and familiar brand. The rewards-to-crypto pipeline could also normalize crypto for everyday use and establish a competitive differentiator in the incumbent loyalty space, setting a template for other major banks to follow.

Beyond crypto, JPMorgan Chase also pioneered yet another way to monetize customer data—direct deals with individual companies—on top of charging fintechs and leaning into in-app advertising. With its constant exploration into new revenue spaces, it’s solidifying its status as the innovative banking incumbent to keep up with.

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