U.S. banking giant JPMorgan Chase & Co. is preparing to accept crypto-linked assets as collateral for loans, signaling a major shift in traditional finance’s relationship with digital currencies. According to Bloomberg sources, the bank will begin by offering credit against iShares Bitcoin Trust, operated by BlackRock Inc., within the coming weeks.
Crypto as Collateral: A Game-Changer
JPMorgan plans to allow select trading and wealth management clients to use crypto-related exchange-traded funds (ETFs) as loan collateral. In some cases, the bank is also considering including crypto assets in its assessment of clients’ total net worth and liquid assets.
This development could pave the way for Bitcoin and other cryptocurrencies to be treated similarly to stocks, cars, or artwork when it comes to loan eligibility—marking a potential turning point in institutional crypto adoption.
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