26 August 2025
Ian Simpson | 2 min read
The largest financial institutions in the world are taking technology seriously – both as an opportunity and a risk. The same goes for the nascent crypto and digital asset industry.
In conversation with Ian Simpson, J.P.Morgan Managing Director and Head Markets Digital Assets Scott Lucas discussed the tectonic plates moving in capital markets, the potential for DLT and blockchain to bring value to established market participants – and how large financial institutions are thinking about the future of markets.
He also discussed the value (real and perceived) of tokenization, the potential for stablecoins, including why “competition is good” – and how settlement could and should look in digital asset markets.
Episode show notes:
(00:58) – Intro
(3:40) – What makes “good markets” ?
(6:06) The “optimal mix” or “minimal threshold” for new markets
(7:31) How J.P. Morgan looks at markets – new and old
(8:48) – The minimum barrier in crypto markets
(11:34) – The art of the possible and the useful
(12:34) Evaluating risk factors in new markets like crypto
(14:44) New technology alongside existing frameworks
(15:31) J.P. Morgan’s inter-day repo as an example
(17:01) The high-level benefits of DLT and blockchain tech
(18:18) A wider-flatter market vs narrow and centralized
(19:15) If a regulator said “yes” today…
(20:07) When innovation comes to the table
(21:08) “Entitled” transparency
(22:07) Top-down vs bottom-up “shift”
(24:56) US vs Switzerland in the regulatory race
(26:24) Placing the “barrier” in the right spot
(28:18) The opportunity for Switzerland
(29:43) Capital requirements as a “gating factor”
(32:24) Financial market infrastructure for a bank like J.P. Morgan
(33:29) The downside of disintermediation
(34:12) Copying current capital market processes
(37:06) Some things are here for a reason…
(38:37) The ideal settlement model for big banks in digital assets
(40:41) The meaning of stablecoins for big banks
(43:53) Stablecoins in the wider capital markets
(45:05) Stablecoins as a settlement mechanism
(46:28) J.P.Morgan and tokenization
(49:13) Mobilizing (tokenized) collateral to support margin
(53:25) Different markets or one market?
(55:22) Partnerships moving the market forward
(57:11) What would really draw J.P. Morgan into crypto and digital assets?
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