JPMorgan to Allow Clients to Use Bitcoin ETFs as Loan Collateral
JPMorgan Chase plans to allow trading and wealth-management clients to use certain crypto-linked assets as collateral for loans. Key points include:
- The bank will offer financing backed by shares of BlackRock’s iShares Bitcoin Trust.
- Crypto holdings will be included in assessments of net worth and liquidity alongside traditional securities.
- This change follows CEO Jamie Dimon's recent statement about allowing clients to buy bitcoin, contrasting his previous stance against cryptocurrencies.
- There is increasing institutional demand for crypto exposure from wealth management firms.
- Political pressure may lead to eased regulation on crypto under the current U.S. administration.