JPMorgan to begin accepting Bitcoin and crypto ETFs as collateral for loans globally
The biggest bank in the US by assets, JPMorgan Chase is getting ready to let its wealth-management and trading customers utilize ETFs as loan collateral from crypto.
Reportedly part of a larger plan to let certain clients borrow against crypto-related assets, this move is revealed by Bloomberg. Initially, the bank is concentrating on crypto ETFs, especially BlackRock’s iShares Bitcoin Trust (IBIT), which has over $70 billion in assets.
Although it would not provide custody services for the crypto, this choice aligns with a comment made last month by JPMorgan CEO Jamie Dimon suggesting that the bank would shortly let customers buy Bitcoin. Though Dimon has always been dubious about cryptocurrencies, this change in policy implies that JPMorgan sees the great commercial value in Bitcoin and other digital assets.
The bank used to assess the usage of crypto ETFs individually, as collateral. But this new strategy shows a trend toward standardizing the technique, much as the bank evaluates other assets—such as stocks, cars, or artwork—to ascertain client borrowing capacity.
