According to a report, JPMorgan Chase, the largest bank in the United States, is set to allow its trading and wealth – management clients to use certain crypto – related assets as collateral for loans. In the coming weeks, the bank will start providing financing for crypto exchange – traded funds (ETFs), beginning with BlackRock’s iShares Bitcoin Trust.
Previously, JPMorgan only considered using crypto ETFs as collateral on a case – by – case basis. However, under the new plan, crypto ETFs will be treated more like traditional assets such as stocks or real estate when assessing a client’s borrowing capacity. The bank will also take into account the crypto holdings of its wealth – management clients when evaluating their overall net worth and liquid assets, similar to how it treats other assets such as stocks, cars, or art.
This move by JPMorgan comes as the Trump administration has relaxed regulatory restrictions, which has encouraged major U.S. banks to expand their presence in the cryptocurrency sector. It marks a significant expansion of JPMorgan’s crypto – related business and signals the bank’s growing acceptance of digital assets.
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